The previous answers were accurate, but perhaps too terse. I will try to add some examples.
First of all, the word proxy describes someone or something acting on behalf of someone else.
In the computer realm, we are talking about one server acting on the behalf of another computer.
For the purposes of accessibility, I will limit my discussion to web proxies, however, the idea of a proxy is not limited to web sites.
Most discussion of web proxies refers to the type of proxy known as a "forward proxy."
The proxy event in this case is that the "forward proxy" retrieves data from another web site on behalf of the original requestee.
For an example, I will list three computers connected to the internet.
Normally, one would connect directly from X --> Z.
However, in some scenarios, it is better for Y --> Z
on behalf of X
, which chains as follows: X --> Y --> Z
.
Here is a (very) partial list of uses of a forward proxy server.
1) X is unable to access Z directly because
a) Someone with administration authority over X
's internet connection has decided to block all access to site Z
.
Examples:
The Storm Worm virus is spreading by tricking people into visiting familypostcards2008.com
, so the system administrator has blocked access to the site to prevent users from inadvertently infecting themselves.
Employees at a large company have been wasting too much time on facebook.com
, so management wants access blocked during business hours.
A local elementary school disallows internet access to the playboy.com
web site.
A government is unable to control the publishing of news, so it controls access to news instead, by blocking sites such as wikipedia.org
. See TOR or FreeNet.
b) The administrator of Z
has blocked X
.
Examples:
The administrator of Z has noticed hacking attempts coming from X, so the administrator has decided to block X's ip address (and/or netrange).
Z is a forum web site. X
is spamming the forum. Z blocks X.
For this example, I will list three computers connected to the internet.
Normally, one would connect directly from X --> Z.
However, in some scenarios, it is better for the administrator of Z
to restrict or disallow direct access, and force visitors to go through Y first. So, as before, we have data being retrieved by Y --> Z
on behalf of X
, which chains as follows: X --> Y --> Z
.
What is different this time compared to a "forward proxy," is that this time the user X
does not know he is accessing Y. A Reverse Proxy is typically less visible than a "forward proxy", and requires no configuration or special knowledge by the client, X
.
The client X probably thinks he is visiting Z
directly (X --> Z
), but the reality is that Y is the invisible go-between (X --> Y --> Z
again).
In the above scenarios, Z
has the ability to choose Y
.
A proxy is simply a middleman for communication(requests+responses). Client <-> Proxy <-> Server
Client proxy: ( Client <-> Proxy ) <-> Server
The proxy acts on behalf of the client. Client knows about all 3 machines involved in chain. Server doesn't.
Server proxy: Client <-> ( Proxy <-> Server )
The proxy acts on behalf of the server. Client only knows about proxy. Server knows whole chain.