The Fundamentals: What Happens Without a VPN
To understand how VPNs work, we first need to examine what happens during a normal internet connection. When you visit a website without VPN protection, your device sends a request to your internet service provider, which then forwards that request to the website's server. The website responds by sending data back through your ISP to your device. Throughout this entire process, multiple parties can see your activities.
Your ISP sees everything. They know your IP address (which identifies your physical location and your account), every website you visit, how long you spend on each site, what services you access, and when you're online. In Australia, ISPs are legally required to store this metadata for two years under the Telecommunications (Interception and Access) Amendment (Data Retention) Act 2015. Your IP address is also visible to every website you visit, allowing them to track your location, build profiles of your behaviour, and potentially share this information with third parties. If you're using public WiFi, anyone else on that network with basic technical skills could potentially intercept your unencrypted traffic, capturing passwords, credit card numbers, and private messages.
This level of exposure is precisely what VPN technology addresses. By understanding these vulnerabilities in normal internet connections, you can appreciate why investing in VPN protection offers such significant value for privacy-conscious Australians.
Normal Internet Connection vs VPN Connection
(Sees Everything)
(Sees Your IP)
(Sees VPN IP)
The VPN Connection Process: Step by Step
When you activate a VPN, a sophisticated series of technical processes occur within seconds to establish your secure connection. Understanding these steps demystifies VPN technology and helps you appreciate what's happening behind the scenes when you click "Connect".
Step 1: Authentication and Server Selection
When you launch your VPN application and click connect, the software first authenticates your credentials with the VPN provider's servers. This authentication ensures that only authorised users can access the VPN network. Simultaneously, the application selects a server to connect to - either one you've manually chosen (such as a server in Sydney for fast local speeds, or one in the United States for accessing American content) or one automatically selected based on factors like server load, distance, and speed.
Step 2: Encrypted Tunnel Establishment
Once authenticated, your device and the VPN server negotiate the creation of an encrypted tunnel. This negotiation involves agreeing on encryption protocols, establishing cryptographic keys, and configuring the secure channel through which all your internet traffic will flow. Modern VPN services use military-grade AES-256 encryption, the same standard used by governments and financial institutions worldwide. This encryption is so strong that even with today's most powerful computers, it would take billions of years to crack through brute force methods.
Step 3: IP Address Masking
With the tunnel established, your real IP address is effectively hidden from the outside world. Websites and online services now see the IP address of the VPN server you're connected to, not your actual IP address. This masking provides location privacy and prevents website tracking based on IP identification. For Australians travelling overseas who want to access Australian services like Stan or Kayo Sports, connecting to an Australian VPN server makes it appear as though you're browsing from within Australia. Our iPhone VPN setup guide includes specific instructions for optimising server selection on mobile devices.
Step 4: Traffic Routing and Encryption
From this point forward, all internet traffic from your device is encrypted before leaving your computer or phone, travels through the secure tunnel to the VPN server, gets decrypted at the server, and is then forwarded to its destination on the internet. Responses travel the reverse path - from the internet to the VPN server, through the encrypted tunnel, and finally decrypted on your device. Your ISP can see that you're connected to a VPN server (they see encrypted traffic going to that server), but they cannot see what websites you're visiting or what data you're transmitting. This is the core privacy protection that makes VPNs so valuable under Australia's data retention regime.
VPN Protocols: The Technical Foundation
VPN protocols are the underlying technologies that govern how data is encrypted, transmitted, and secured between your device and the VPN server. Different protocols offer varying balances of speed, security, and compatibility. Understanding these protocols helps you make informed decisions about which to use in different situations.
| Protocol | Security Level | Speed | Best Use Cases |
|---|---|---|---|
| WireGuard | Very High | Fastest | Default choice for most users, excellent for mobile devices |
| OpenVPN | Very High | Fast | Highly configurable, works in restricted networks |
| IKEv2/IPSec | High | Fast | Mobile connections, handles network switching well |
| L2TP/IPSec | Medium | Moderate | Legacy systems, basic privacy needs |
| PPTP | Low | Very Fast | Not recommended - security vulnerabilities |
WireGuard
The newest protocol, praised for efficiency and security. Uses modern cryptography with minimal code base.
OpenVPN
Mature, open-source protocol with excellent security and flexibility. Industry standard for years.
IKEv2/IPSec
Excellent for mobile devices, particularly iOS. Reconnects quickly when switching networks.
Encryption: The Mathematics of Privacy
At the heart of VPN security is encryption - the mathematical process that scrambles your data into unreadable code. When you send data through a VPN, it undergoes encryption using sophisticated algorithms that transform readable information into seemingly random characters. Only someone with the correct decryption key can reverse this process and read the original data.
Most reputable VPN services use AES-256 encryption, also known as Advanced Encryption Standard with 256-bit keys. To put this in perspective, AES-256 has 2^256 possible key combinations - that's approximately 115 quattuorvigintillion possibilities (a number with 78 digits). Even if you could test a trillion keys per second, it would take longer than the age of the universe to try them all. This level of encryption is why VPNs can legitimately claim that your ISP cannot read your internet traffic, even though they can see you're connected to a VPN server.
The encryption process happens transparently in the background. You don't need to understand the mathematical complexities to benefit from the protection. However, understanding that this level of security exists helps you appreciate why VPNs are trusted for protecting sensitive communications, from personal banking to confidential business data. For a deeper exploration of security considerations, our article on VPN safety and security limitations provides comprehensive analysis.
DNS and Its Role in VPN Privacy
DNS (Domain Name System) is often called the internet's phonebook. When you type a website address like "google.com.au", DNS servers translate that human-readable domain into the numerical IP address that computers use to communicate. Normally, your ISP handles these DNS requests, meaning they can see every website you visit even if they can't see what you do on those sites.
Quality VPN services include DNS leak protection, routing your DNS queries through the encrypted VPN tunnel to the VPN provider's own DNS servers. This prevents your ISP from seeing which websites you're looking up. However, improperly configured VPNs can suffer from DNS leaks, where DNS requests inadvertently bypass the VPN tunnel and go directly to your ISP's servers. This is why testing your VPN for leaks is essential - a topic we cover extensively in our practical VPN usage guide.
Kill Switch: Your Safety Net
Even with reliable VPN services, connections can occasionally drop due to network interruptions, server issues, or software glitches. When a VPN connection drops unexpectedly, there's a brief window where your device might revert to your normal internet connection, potentially exposing your real IP address and allowing your ISP to see your activities. This is where a kill switch becomes essential.
A VPN kill switch is a feature that monitors your VPN connection continuously and, if it detects the connection has dropped, immediately blocks all internet traffic until the VPN reconnects. This prevents any data from being transmitted outside the VPN tunnel, ensuring no leaks occur even during connection disruptions. There are two types of kill switches: application-level switches (which only block internet access for specific apps) and system-level switches (which block all internet traffic system-wide). For maximum protection, particularly for Australians concerned about data retention monitoring, a system-level kill switch is preferable.
Split Tunnelling: Selective VPN Usage
Split tunnelling is an advanced feature that allows you to choose which applications or websites use the VPN connection and which use your regular internet connection. For example, you might want your web browsing to go through the VPN for privacy, but want your online banking app to use your regular connection so your bank doesn't flag the unusual location.
This feature is particularly useful for Australians who need to access both local and international services simultaneously. You could route streaming services through the VPN whilst allowing local Australian services to use your regular connection for better performance. However, split tunnelling does introduce complexity and potential security risks if not configured carefully. Any traffic outside the VPN tunnel is exposed to normal surveillance and tracking. Use this feature thoughtfully, understanding the privacy implications of your choices.
Practical Implications: What This Means for You
Understanding how VPNs work technically helps you use them more effectively and make informed decisions about your privacy protection. When you activate your VPN, you're engaging a sophisticated system of encryption, authentication, and network routing that transforms your vulnerable internet connection into a protected channel. Your ISP sees only encrypted data flowing to a VPN server, with no visibility into your actual online activities. Websites see the VPN server's IP address rather than yours, preventing location-based tracking and geo-restrictions. Your data is protected from interception on public WiFi networks, and your online activities remain private from mandatory data retention monitoring.
However, VPNs are not magic solutions. They protect your internet traffic from your device to the VPN server, but they don't make you completely anonymous online. Websites can still track you through cookies and account logins. Your VPN provider can theoretically see your traffic, which is why choosing a provider with a verified no-logs policy is critical. VPNs don't protect against malware or phishing attacks. Understanding both the capabilities and limitations of VPN technology allows you to use it effectively as part of a broader privacy and security strategy.