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A proxy is a server that relays your computers orders. Instea of your computer accessing a website, you access the proxy server which will access the website for you.
When the website tries to find out what asshole just wrecked its shit it only finds the data of the proxy and not yours.
It's not perfect anonymity and with enough time and effort can be backtracked, but it's enough to get away with posting porn on FJ, for example.
en.wikipedia.org/wiki/Proxy_server
The first pic explains it very nicely and visual.
When the website tries to find out what asshole just wrecked its shit it only finds the data of the proxy and not yours.
It's not perfect anonymity and with enough time and effort can be backtracked, but it's enough to get away with posting porn on FJ, for example.
en.wikipedia.org/wiki/Proxy_server
The first pic explains it very nicely and visual.
If you used a proxy to look at a website, and the owner of the website decided to "back trace", for lack of a better word, and look at the information of anyone who visited his site, he would see the information of the proxy or proxies that you accessed the site through, rather than that of your actual computer.