DSL Reports wrote:Granted the lion's share of pirates will simply switch to VPNs and proxies, with the end result being no real dent on piracy -- but even higher broadband rates as ISPs pass on the cost of these countermeasures to all consumers -- pirates or not.
When you download or seed a torrent, you're connecting to a bunch of other people, called a swarm, all of whom—in order to share files—can see your computer's IP address. That's all very handy when you're sharing files with other netizens, but file sharers such as yourself aren't necessarily the only people paying attention. Piracy monitoring groups (often paid for by the entertainment industry either before or after they find violators) also join BitTorrent swarms, but instead of sharing files, they're logging the IP addresses of other people in the swarm—including you—so that they can notify your ISP of your doings. A proxy (like BTGuard) funnels your internet traffic—in this case, just your BitTorrent traffic—through another server, so that the BitTorrent swarm will show an IP address from a server that can't be traced back to you instead of the address that points to your house. That way, those anti-piracy groups can't contact your ISP, and your ISP has no cause to send you a harrowing letter.
