In today’s world, many people worry about online privacy and security. One way to stay anonymous online is by using residential proxies. But have you ever wondered, “How are residential proxies sourced?”

Unfortunately, not all ways are ethical. In some cases, people’s devices and internet connections are used without their full understanding or consent, which can lead to privacy breaches and misuse. 

That’s why it’s really important to know where your proxies come from and make sure they are sourced fairly and transparently, with proper consent from everyone involved.

In this blog, you’ll learn:

  • How residential proxies are sourced from different devices.
  • The importance of consent when using these proxies.
  • The different methods of obtaining residential proxies, including ethical & unethical practices.
  • How to choose a trustworthy proxy provider.

What Are Residential Proxies?

First, let’s understand what residential proxies are. When you use a residential proxy, you are using an IP address from a real home device given by an Internet Service Provider (ISP). This makes it look like your online activity is coming from a real home, which makes it harder for websites to notice and block what you're doing. 

Residential proxies are great for tasks like:

  • Getting around website blocks

  • Avoiding captcha checks

  • Collecting data without being noticed.

If you want, you can check out this informative blog to learn how to get Residential Proxies.


How are Residential Proxies Sourced?

Proxy providers get residential IPs in different ways, and some methods are more honest than others. Some businesses get consent from the device owners and reward them, while others secretly use people's devices. 

Category

Ethical Level

Practices

Tier A+ (Best)

High

Users give clear consent and are rewarded for sharing their IP.

Tier A

Moderate

Users give consent but might not fully understand how it's used.

Tier A

Low

Users unknowingly share IPs or are not properly informed.

Basically, there are three methods used to get residential proxies.

Partnerships with ISPs:

  • Proxy companies work with Internet Service Providers (ISPs) to rent out the IP addresses from people using home internet. This way, they can use real home IPs for proxies.

Peer-to-Peer (P2P) Networks: 

  • In this method, users are encouraged to share their internet by being offered rewards like free apps or VPNs. When users agree, their internet connection becomes part of a larger proxy network.

Proxy Farms:

  • Some companies set up lots of devices, all connected to home internet, just to act as residential proxies for other users.

Ethical Proxy Sourcing Practices

Ethical proxy companies should follow these good practices:

  • User Permission: Users must know and agree before sharing internet traffic that their device is part of the proxy network.

  • Clear Explanation: Companies should clearly explain how their device will be used and what resources will be shared in the easiest way possible. 

  • User Awareness: Providers should educate users on proxy network participation and data usage.

  • Rewards: Users should get something in return for sharing their unused bandwidth (e.g., per GB), like financial rewards, for instance, Bright Data’s EarnApp or other benefits. 

  • Data Safety: Companies must protect users' data with strong security.

  • Legal Rules: Companies should follow privacy laws like GDPR or CCPA to keep things transparent and legal.

Residential IPs Collected Through Other Methods (Varying Ethics)

There are other ways companies source residential proxies through both ethical and non-ethical mediums.

Mobile/Software SDKs

Some apps on your phone might include a tool called an SDK (Software Development Kit) from a proxy company. When you download these apps and agree to their terms, the app can turn your phone into part of a residential proxy network. In return, the app developer might earn money or avoid putting ads in the app.

**If the app clearly states that it will use user devices as proxies and obtains explicit consent, it is considered ethical.

**If the app's terms of service or privacy policy do not explicitly mention proxy usage or are difficult to understand, it is considered unethical.

Browser Extensions

Proxy companies can also partner with browser extensions. These extensions add code that allows the proxy company to use the IP addresses of the people using the extension, which ultimately makes their internet connection part of a larger proxy network.

**To be considered ethical, the extension should have a clear purpose, and users must be fully informed and agree to its proxy use.

**It's unethical if the extension hides its proxy use, is used for bad purposes, or doesn't give users any real benefits or rewards.

Botnets (Infected Devices)

Some companies use devices without permission by infecting them with malware. For example, they might hack into IoT devices like security cameras and secretly route internet traffic through them. This is illegal and unethical.

Build Your Own Network

Some companies are building their own proxy networks by using special hardware and SIM cards. These networks route traffic through real mobile networks, creating mobile residential proxies.

**To be considered ethical, providers should follow the law, clearly inform users, and get proper consent when using devices or SIM cards as proxies.

**Using BYO proxies for illegal activities, violating privacy, or getting SIM cards through fraud is unethical because it harms users and breaks laws.


An Example of How A Reputed Proxy Provider Sources Their Proxies

We all know how reputable Oxylabs is in providing ethically sourced IPs. Let me share their sourcing steps in the following.

Reputed Proxy

Here’s a simpler explanation of the process shown in the image:

  • End User: Regular people who use an internet-sharing app. When they agree (give consent) to share their internet, their device becomes an exit node (a point through which data passes).

  • Internet Sharing App Owner: The owner of the app that the end user is using. They reward the end user (with money or another benefit) in exchange for allowing their device to be part of the proxy network.

  • Oxylabs’ Infrastructure: Oxylabs handles the system that gathers these shared internet connections from app owners. Oxylabs pays the app owners for these connections.

  • Customer: A person or company that needs residential proxies. They use Oxylabs' proxies to make it look like they are browsing from real home IP addresses.

Process summary:

  • End users share their internet for rewards.

  • App owners link these users to Oxylabs.

  • Oxylabs collects the shared connections and offers them to customers as residential proxies.

Ethical Sourcing: A Commitment

Many reputable proxy providers, like the one in the provided example, prioritize ethical sourcing practices. Here's what they might do:

 Factor

 What It Means

 User Consent

 Users must be fully informed about their devices being used.

 Rewards

 Participants should get money or benefits for sharing their IP.

 Data Security

 All data must be securely stored and protected.

 Compliance with Laws

 Providers must follow data protection laws like GDPR or CCPA.


Choosing the Right Proxy Provider: Transparency Matters

When choosing a residential proxy provider, it's important they are clear. Look for companies that:

  • Clearly explain how they get their proxies.

  • Show how they get permission from users.

  • Focus on protecting user privacy and data.

  • Follow the necessary laws and rules.

Wrapping Up

Hopefully, I can fully showcase to you “How are Residential Proxies Sourced?” Residential proxies help with private browsing and web scraping, but how they're sourced matters too. Ethical practices include getting users' permission, giving clear info, rewarding users, and keeping data safe. Picking a provider that follows these rules ensures you're using a proxy service that values privacy and fairness.

Make sure to choose a provider that is clear and honest in their business. This way, both the people sharing their internet and the customers using proxies benefit from a safe and trustworthy system.


FAQs

  1. Why are residential proxies used?

Residential proxies are used for things like web scraping, SEO, social media, online shopping, and privacy.

  1. Are there any risks associated with using residential proxies?

While residential proxies can offer benefits, there are risks, such as potential legal issues if used for malicious activities and the possibility of being detected by websites.

  1. Can residential proxies be detected?

While it's difficult to completely avoid detection, using high-quality residential proxies and best practices can reduce the risk.

About the Author

Jayden Sprent is a distinguished expert in Cybersecurity, Proxies, and Web Scraping. He graduated from California University with a strong foundation in Cybersecurity. With extensive experience and a deep understanding of digital security, Jayden is dedicated to protecting online environments and optimizing web data extraction. His expertise in proxies ensures efficient and secure internet connections, while his proficiency in web scraping enables valuable data acquisition. Jayden's commitment to excellence and personalized approach has made him a trusted professional in the field.

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