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Tor browser and VPN are both used for the same purpose- to provide privacy and security over the public internet.
Both use the encryption process and proxy servers for scrambling and redirection of internet data from users to servers. The main difference is between the method of transferring data and using proxy servers.
Differences between Tor and VPN
Tor:
Tor is a free browser that is mostly used to provide anonymity to users; no one knows who about the users. Tor uses the onion directing strategy, in which the users’ data is first scrambled and then pass through a series of nodes in the Tor network, which add more layer of encryption to data, and at the end transfer to the desired destination. Tor uses volunteer servers in its network from all around the world. Tor can also be used to access the dark web or darknet. Tor works on the concept of decentralization; there is no central body to control the Tor network. Tor is untraceable, as the connection cannot be traced back to the user.
The destination and ISPs know when it is used and most of the firewalls block connections from Tor network. Tor is relatively slow then VPN. Tor also has compatibility issued with most of the devices. Tor is not recommended for P2P activities.
VPN:
VPN, virtual private networks, is mostly a paid system, and some of them are free to users. It is famous for providing privacy over the internet. VPN uses the intermediary servers to encrypt the data, when a user is connected to the internet through VPN the traffic is routed through server present miles away from the user which hides the user destination address and connect it to the internet that server. VPN is mostly used to connect with websites that are blocked by the ISPs in the respective country. It cannot be used to connect to the dark web. VPN also works in a decentralized structure, as VPN servers are present around the world. Still, in a bigger picture, it works as a centralized system, as all the intermediary servers are controlled and managed by a central authority. A VPN connection can be traced back to the user, as the central authority manages all the logs.
VPN is faster as compared to Tor. VPN is compatible with all devices just require the paid license to use VPN software. VPN is recommended for P2P activities.