How VPN Works

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How does VPN work? The answer to this question lies in first, an understanding of the meaning of a virtual private network, and then an understanding of how a VPN is created.

A VPN works much like the previous hard-wired network systems; a virtual private network gives the owner the ability to share information with others on their network by means of a private, exclusive link that is created by a method other than hard-wires or leased lines; usually via the public internet.

Before the internet, computers in different offices, cities or even countries could talk to each other like people could - through telephone wires. As the needs for businesses to do that grew, telephone lines became replaced by higher volume wires, like T3 circuits, but the concept was the same. For computer A to talk to computer B, there had to be a physical wire connection. For security reasons, you would want to make sure that only your 2 computers used that line, so you would contract with a vendor to "lease" that circuit. However, this type of network was expensive and difficult to expand, not to mention difficult for the client to have control over.

With the advent of the internet, connections no longer needed to be physical. As long as each computer has access to the internet, information can be shared using local ISP circuits, across the internet, and to the recipient in much the same way that it was when the computers were physically connected. This is why the way VPN works is considered a "virtual" network; the entire connection is not hard-wired.

So how does VPN work in regards to security? In an old WAN arrangement, the security of data transmission could rely entirely on the provider's guarantees. Today, however, a VPN keeps information private by means of encryption on both the sending and receiving end. There are a variety of encryption protocols, depending on what a company's needs are, who they need to communicate with (and therefore be compatible with), etc. The data is not only encrypted, but it is encapsulated, meaning it is sent in its own private "tunnel" or connection across the internet. No one can see the data, and even if they could, they can't decipher or change it. In this way, information can be sent across the internet without being susceptible to interception or corruption by those who are outside of the VPN.