When you are connecting to a VPN Service Provider you will be assigned a Shared IP address, in other words, an IP address that is used by multiple users simultaneously. When you are using a Shared IP address, it might not sound good. As a matter of fact, it offers increased anonymity when compared to using a Dedicated IP address that is only and solely assigned to your VPN account.
Dedicated IP addresses are usually needed when accessing IP restricted servers or websites. Operating a website or an FTP server off your VPN service provider could also be one of the reasons to make the most of a Dedicated IP address. For the most of the VPN users who can perform casual web browsing, file sharing, downloading and need anonymous browsing capabilities, the Shared IP address can be the safest option for them.
Smart DNS Proxy Server
Smart DNS is the latest service offered by VPN Service Providers. Some provide it as an add-on service while others can include it with a VPN subscription. With a VPN service all the internet traffic is channelled via an encrypted connection to a VPN server and change IP address as well and departs to the internet from there. With Smart DNS, a connection can be established between the Smart DNS server and client, but, communications are not encrypted and only the selected traffic is channelled and forwarded to the Smart DNS Server which works very much like a Proxy Server to assist to unlock access to geo restricted services like Netflix, Hulu and other streaming services.
This can be accomplished by overriding the chosen DNS entities. For example, Netflix, the DNS queries resolve the address of the Smart DNS server, instead of the real server. The Smart DNS server approves client requests and acts as a proxy so that the chosen services can be channelled through it; letting you access to any geo restricted or blocked content from any location in the world. Hence, it is essential to consider that the Smart DNS service is not a VPN service replacement. All traffic sent and received through the Smart DNS service is deemed unencrypted and speeds are normally fast as usual when compared to a VPN, all credits to the absence of encryption, which makes it ideal to access the geo restricted streaming services or services where data encryption is not essential.