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The proxy is used to link a LAN to internet.
All the computers in the LAN have a private IP.
So the proxy can share an IP (for example a WebSite) to all the LAN and it's better for a security question.
You can use a proxy server to do :
(ex : acl exampleacl dstdomain .example1.com .example2.com
http_access deny exampleacl)
OSI Model : Layer7 : Application