VPN vs. proxy: what's the difference?
A VPN (virtual private network) routes all your Internet traffic through an intermediary server, generally encrypted: the sites you visit only see the VPN's IP address, never yours. A proxy also acts as an intermediary, but generally without systematic encryption and often limited to certain applications (the browser, for example) rather than the whole device.
Your device
VPN / proxy
IP masked
Visited site
Only sees the VPN's IP
How a VPN or proxy is detected
The IP addresses of VPNs, proxies and hosting companies (datacentres) are generally known and catalogued, since they belong to dedicated ranges rather than to consumer connections. Classification databases track these ranges, which is what Get My Public IP's VPN/Proxy detection tool queries. A "hosting/datacenter" status isn't always a VPN: it can also be a plain hosted server or website.
Legitimate uses and warning signs
VPNs are widely used to protect one's privacy, secure a connection on a public network, or access content from abroad. They are also sometimes used for less legitimate purposes (bypassing restrictions, fraud, spam), which is why some sites and services check whether an IP belongs to a VPN before allowing certain actions.
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