The primary role of an intermediary server like this is to act as both a cache to speed up access to data and as a security measure. By channeling client requests through itself, it can serve frequently accessed content quickly from its cache, and it can filter requests to protect the client machines from direct exposure to the Internet, enhancing security. It can also obscure client IP addresses for anonymity.
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How does caching improve access speed in an intermediary server?
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How does an intermediary server enhance security for client computers?
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What is the difference between an intermediary server and a DHCP server?