Hello Frendzzz........drunk.
I am come again with simple and Nice Tutorial i.e. What is Difference Between proxy and vpn(TUT) ?
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Kindly Read Carefully ,If you really want to learn Something Usefull and Important in Networking....!!! 
Its so easy and Simplerockon.
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 Whilst both of these technologies reroute your computers network internet connection and change your IP address they do work in slightly different ways and the products co-exist as customer compatibility with either or both may vary based on firewall security and/or ISP provisions.


Think of a proxy server as a kind of filter, in simple terms the proxy settings are applied to your chosen internet browser (i.e. Internet Explorer, Mozilla Firefox etc).  Then when browsing web pages they are routed to you via the proxy with all the benefits associated with the proxy server (i.e. security, speed, geographic location etc).


Unlike a proxy, which only secures the internet browser or software application with the proxy data entered into it, VPN (Virtual Private Network) encrypted tunnelling encrypts all your internet access, effectively replacing your local ISP routing 100% for all applications with all the benefits associated with the VPN server (i.e. security, speed, geographic location etc).  VPN can easily be connected or disconnected with a click on a desktop icon.


In conclusion a proxy is purely browser based and has less compatibility with certain websites that use non-browser technology (i.e. Zattoo, View TV, 4OD, Sky Player, FOX OD etc); whereas VPN will work with all internet based services but offers less choice on which applications you route through the external server; as with VPN everything is routed whilst you are connected to it.

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By : Sudhir Mishra cool2
In simple words:

Proxy is a server or a gateway, that directs the IP traffic through its own server, on the other hand VPN(Virtual Private Network) works on authentication based communication..
which works on the concept of public and private key.
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