Internet without VPN
While browsing, when you access a website on the internet without a VPN, you are directly connected to the browsing site through your ISP. In this case, the ISP is handling and directing all your traffic, and it assigns you a unique and original IP address. This IP address can be used to identify you to the website.
The website knows who you are and what your location is. As your ISP is handling and directing all your traffic, it can also keep a check on the websites you visit, and your activity can be linked to you by your original IP address.
Internet with VPN
When you connect to the internet after installing a VPN app, you enter into a safe tunnel created by the VPN app on your device. With this secure connection with a VPN server, a mask is provided to your identity, and your traffic passes through your ISP, but now your ISP is not allowed to read or see your traffic and cannot spy on your activities.
The VPN will hide your IP address from the websites by replacing the original IP address with the IP address of the VPN server. This IP address is shared by several users and keeps on changing regularly.
How does a VPN hide the IP address?
Hiding the IP address is an essential function of a VPN. The significant risk to the privacy of an internet user is through IP address. When you connect to the internet without using a VPN, your original IP address is shown to the website. The IP address is a complete picture of your location and browsing activities.
VPN function: briefly explained
Below is a brief step-by-step explanation of how a VPN works.

Encryption
Encryption is the most popular activity done by VPN software. When you are connected to a private VPN server, the data is encrypted into a secret code and hidden from third parties. In this way, traffic contents are kept confidential, and only the intended receiver is allowed to decrypt and see the normal plain text.
The encryption and decryption of data are done by using an algorithm called encryption cipher. Ciphers are linked with the keys or passwords used in the authentication process.
With an encrypted VPN service, the data remains safe, and even the local Wi-Fi operator or the internet service provider cannot see or read the data or traffic contents.
Authentication
Proving a secure connection to a user is not a simple task. It involves some tricky mathematical solving process called authentication. Authentication is a form of proof that a user is allowed access and provides access control.
Authentication is a kind of password made of long and complex characters. It is provided to the parties who are creating a VPN tunnel between their VPN devices. Once authentication is done, it makes sure that the VPN server and the user are directly communicating, without the interference or spying of a third party. It is said that the more complex and long the characters of an authentication password, the more secure it is.
Tunneling
Tunneling is a process that provides a way to cloak some of your online activities. A VPN tunneling is explained as an encrypted link between your device and an outside internet network.
In tunneling, a VPN connects your smart devices like phones, laptops, tablets, or computers to another network while hiding your IP address and encrypts all the data generated while surfing on the internet.
By creating an indirect connection to websites through a VPN tunnel, you can protect your online activities and the IP address from hackers, government bodies, and other snoops. Tunneling is useful when you are using the internet in public, hotels, library or coffee shops.
Proxying
Proxying is an activity done by VPN. In this process, a user can hide the actual location by hiding the IP address and can show the location from anywhere in the world. Proxy helps to unblock and visit the sites that are restricted in specific locations.
By showing the location through the IP address of the private VPN server, the user can become more anonymous to the websites.