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Residential IPs and Their Use Cases

For years, after the invention of the telephone in the late 19th century, voice communications were dependent on circuit switching. Telephones had an end-to-end connection between two parties dedicated to the electronic transmission of information.

Over time, communication transmission technology evolved beyond voice to data. Data transmission needed a new unique encryption technology and more bandwidth allocation. The emergence of the Transmission Control Protocol/Internet Protocol (TCP/IP) led to the development of IP addresses and laid the grounds for the internet.

Internet Protocol addresses delivered data to individual internet-enabled devices, while Transmission Control Protocol (TCP) tracked packets of data sent for efficient network routing. Every device online now has an IP address, a numerical figure that gives devices access to the internet protocol for data transmission.

The unique numerical identifier can communicate the location of the device as well as its host identification to the public. All IP addresses are managed and issued by the Internet Assigned Numbers Authority (IANA). IANA, in turn, delegates all local IP addresses to five Regional Internet registries (RIRs), which cover every location on the globe.

The RIRs then distribute IP addresses to other parties such as Internet service providers (ISP). ISPs assign the IP addresses under its charge to devices on its network as a residential IP address. A residential proxy has many other uses beyond their online identification purposes. Most of these uses come to play in proxy server use.

Types of IP addresses

There are two main types of IP addresses online. Data center proxies are easy to access and affordable online. They are cheaper than residential IPs because they are not actual IP addresses. They are rather a combination of numbers that look like valid IP addresses.

Upon close inspection, however, any keen eye can tell that they are not genuine IP addresses. Your device can utilize its own residential IP address or purchase a new one from an ISP. Both types of IP addresses provide many benefits in proxy server use.

What is a proxy server?

Proxy servers are commonly associated with the access of blocked Netflix content. They can, nevertheless, do much more for businesses. A proxy server is a web tool that acts as an intermediary between a computer’s browser and the internet. Proxies, like any internet-enabled device, have an IP address.

The proxy intercepts all communications to and from a web browser, displaying their IP address. Consequently, all websites and devices online will only access the proxy server’s IP address, rather than that of your computer network. This feature enhances online privacy and security.

The data center proxy use is, however, limited by its lack of authenticity, meaning that data center proxy servers cannot work in all the use cases of residential proxies listed below.

The use cases of a residential IP address

Enhancing institutional and corporate security

Security risks for businesses are on the rise. Data shows that by 2022, companies worldwide will be spending over $133.7 billion on cybersecurity. According to data protection firms, it is only 5% of businesses online invested in robust data protection strategies.

Consequently, in 2019, 4.1 billion records were exposed to data breaches, 75% of which were financially motivated while 25% of them were of espionage in nature. Of these breaches, hackers perform 52% of them, while 33% of them are deployed using social engineering or phishing techniques. It is only a small 28% of data breaches that are attributed to malware, yet businesses only have large budgets for anti-malware protection. 

Uber technologies have paid dearly in the past for a massive breach that led to the loss of the personal data of over 57 million of its customers. The breach was financially motivated, forcing an illegal payment of over $100,000 to the hackers from Uber. Many other businesses such as Yahoo, Equifax, MySpace, and Target Corp have had even larger data breaches that have led to financial and reputational losses.

Residential proxies can make hackers work more difficult by acting as a firewall and an extra layer of security between your computers and the internet. The proxy’s residential IP will make you less vulnerable to hackers since they can only access it rather than your computers.

The hacker will, therefore, have a hard time initiating phishing activities since they cannot access your employee’s addresses or locations easily. They will also have a harder time activating social engineering attacks since they cannot trace the computer user’s activities online.

Anonymous web use

Anonymity online is becoming a crucial feature since it protects businesses, their partners, and clients. Businesses can use this feature not only to protect themselves but also to access priceless business data via web scraping.

Other uses of proxy servers

  • Balancing server traffic
  • Controlling the usage of internet bandwidth by employees


The residential IP proxy is an essential web tool for businesses. It will enhance your data protection strategy against hacking, phishing, and social engineering attacks. Access the best residential IP proxies from reputable proxy service providers with a good reputation online.

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