A proxy server acts as an intermediary between a user's device and the internet. When you request a website, the proxy server retrieves the information on your behalf and sends it back to you. This helps to hide your IP address, providing a layer of anonymity while browsing. Additionally, proxy servers can improve internet speed and security. They can cache frequently accessed websites, allowing for quicker loading times. Some organizations use proxies to control internet usage and filter content, ensuring that employees access only appropriate sites while online.