Proxy is used to hide your real IP address. One of the popular software used to setup proxy is
I have recently created a script to auto install squid proxy on Ubuntu 16.04 and Ubuntu 14.04 servers. All you need to do is run
wget https://raw.githubusercontent.com/HostOnNet/squid-proxy-installer/master/squid3-install.sh chmod 755 squid3-install.sh sudo ./squid3-install.sh
That will install squid and set it up for password authentication.
Now create your first user name and password with command
/usr/bin/htpasswd -b -c /etc/squid/passwd USERNAME-HERE PASSWORD-HERE
Now your proxy is ready, you can configure it in your browser.
Residential Proxy Network
Recently found some sites, that provide proxy based on residential IP address. Not sure how they are getting these IPs. All i can think of is they infect Windows PC with some malware, then use it as proxy or pay residential users to run some software, that work as proxy. If anyone use these proxy for something illegal, owners of these PC will be in trouble.