How does a VPN work / What does it do?

Definitions

Encryption: Is the process of encoding data so that only a computer with the right decoder will be able to read and use it. In a VPN, the computers at each end of the tunnel (Customer computer and Hotspot Shield VPN Server) encrypt the data entering the tunnel and decrypt it at the other end.

Public IP: A public (or external) IP address is the one that your ISP (Internet Service Provider) provides to identify your home network to the outside world. It is an IP address that is unique throughout the entire world. Public IP ranges are assigned to each country in the world by the IANA (Internet Assigned Numbers Authority).