a proxy server is a server that acts as an intermediary between a workstation user and the Internet so that the enterprise can ensure security, administrative control, and caching service. A proxy server is associated with or part of a gateway server that separates the enterprise network from the outside network and a firewall server that protects the enterprise network from outside intrusion.
Basically the Proxy server has its own IP address so when you request an address from the net from it, instead of your IP being sent with the request, the IP of the proxy server is sent the proxy server gets the information and passes it to the original requestor. Its only helpful to hide your address if you hack into someone elses proxy server because then the IP address you have is the IP that is owned by someone else
but it is still traceable because the Proxy server usually keeps records of who logged on, so the hacker would have to clear that trace.
