A proxy server is acting as a computer in a way and thus has its own IP address as well. When the proxy receives your address, it can make changes to it — such as masking your IP address to hide your identity and location — before sending your request onto your requested website.

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Setting up a Proxy Server for traffic monitoring with Setting the Squid3 proxy server on the /etc/proxychains.conf like http [IP address] 3128, where the 3128 is the default port provided by the proxy service. If you scan with nmap the 3128 port of the squid3 service won't be on the server. On the squid3 config file. Proxy Server - Everything you need to know about proxy

Access the wealth of information on the Internet without giving up your privacy. What you do on the Internet is nobody's business but your own. ProxySite.com stands between your web use and anyone trying to monitor your activity.

What is a Proxy Server? - Definition from Techopedia