A VPN hides your IP address by letting the network redirect it through a specially configured remote server run by a VPN host. This means that if you surf online with a VPN the VPN server becomes the source of your data. This means your Internet Service Provider (ISP) and other third parties cannot see which websites you visit or what data you send and receive online. A VPN works like a filter that turns all your data into "gibberish". Even if someone were to get their hands on your data it would be useless.