A proxy server can be dedicated to a single client or shared among many clients. Proxies dedicated to a single client are called private proxies. Proxies shared among numerous clients are called public proxies.
Public proxies
Most proxies are public, shared proxies. It's more cost effective and easier to administer a centralized proxy. And some proxy applications, such as caching proxy servers, become more useful as more users are funneled into the same proxy server, because they can take advantage of common requests between users.
Private proxies
Dedicated private proxies are not as common, but they do have a place, especially when run directly on the client computer. Some browser assistant products, as well as some ISP services, run small proxies directly on the user's PC in order to extend browser features, improve performance, or host advertising for free ISP services.
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