What is the difference between a proxy and a VPN?

Proxies and VPNs (Virtual Private Networks) have something in common in that they serve as intermediaries in your internet connection, rerouting your traffic and changing your IP address. However, they're different in how they operate and the level of privacy, security, and functionality they offer.

Proxy: It's a lighter, application-specific tool better suited for quick tasks like simple IP masking. For this reason, it's often used to tackle IP bans or geo-restrictions on some websites.
VPN: For privacy and security, VPN encrypts all data traffic from your device, and yet it may slow down your internet connection more than a proxy. It's ideal for users who seek privacy and security.