The content outlines the two primary types of IP addresses used by VPN services—datacenter IPs and residential IPs—and highlights their differences, use cases, and implications. Here’s a deeper dive into each point to explain why it makes sense and how it’s grounded in the reality of VPN operations:

Datacenter IPs (Most Common):
Datacenter IPs are provided by hosting companies like Amazon Web Services (AWS), DigitalOcean, or Google Cloud. These IPs are assigned to servers in data centers, not individual home users. VPN providers lease these IPs in bulk to offer a wide range of server locations to their customers.
Ease of Acquisition and Cost: Hosting providers offer scalable infrastructure, allowing VPNs to quickly deploy thousands of IPs across global data centers. This is cost-effective compared to acquiring residential IPs, which require agreements with ISPs or complex setups.
Mainstream VPN Usage: Major VPN providers like NordVPN, ExpressVPN, and Surfshark rely heavily on datacenter IPs because they’re optimized for speed, reliability, and scalability. These providers operate thousands of servers worldwide, and datacenter IPs are the backbone of their infrastructure.
rawback (Detection and Blocking): Websites, especially streaming platforms (e.g., Netflix, Hulu), ticketing sites (e.g., Ticketmaster), or e-commerce portals, use sophisticated detection mechanisms to identify datacenter IPs. Since these IPs are tied to known hosting providers, they’re often flagged as non-residential and blocked to prevent bypassing geo-restrictions or automated scraping. For example, Netflix’s VPN detection system scans for IP ranges associated with data centers, limiting access to region-locked content.

Residential IPs (Less Common):
Residential IPs are assigned to home users by Internet Service Providers (ISPs) as part of their broadband or mobile plans. These IPs appear as if they belong to real users, making them harder to detect as VPN or proxy traffic
Harder to Detect: Since residential IPs are indistinguishable from those of regular home users, they’re less likely to be blocked by websites. This makes them valuable for accessing geo-restricted content or services that aggressively block datacenter IPs, like streaming platforms or sneaker drop sites.
Proxy Providers vs. VPNs: Residential IPs are more common in proxy services (e.g., Smartproxy, Oxylabs) designed for specific use cases like web scraping or accessing restricted sites. Most mainstream VPNs don’t use residential IPs due to the complexity and cost of acquiring them. Instead, proxy providers specialize in offering residential IPs for targeted tasks.

Premium Features in VPNs: Some VPNs, like Windscribe or certain premium tiers of other providers, offer residential IPs as an add-on because they’re harder to source and maintain. These IPs often come at a higher cost due to partnerships with ISPs or other providers.
P2P VPNs and Privacy Concerns: Peer-to-peer (P2P) VPNs or “IP sharing” models (e.g., Hola VPN in the past) use residential IPs by routing traffic through users’ devices. This raises privacy concerns because it turns users into unwitting exit nodes, potentially exposing their IPs to malicious activity or legal risks. Such setups are often considered shady due to lack of transparency and control over how IPs are used
Why This Breakdown Matters
The distinction between datacenter and residential IPs is critical for understanding VPN performance and limitations:

Use Case Dependence: Users choosing a VPN for casual browsing or security might not care about IP type, as datacenter IPs are sufficient. However, users trying to bypass strict geo-restrictions (e.g., streaming, gaming, or ticketing) may need residential IPs to avoid detection.
Cost vs. Functionality: Datacenter IPs keep VPN services affordable and scalable, while residential IPs are a niche, premium offering due to their scarcity and effectiveness.
Privacy and Ethics: The mention of “shady setups” highlights the risks of certain residential IP models, where user privacy can be compromised in P2P or IP-sharing systems.

Supporting Evidence

Industry Practices: Major VPN providers like NordVPN and ExpressVPN explicitly state on their websites that they operate their own server infrastructure, which is typically hosted in data centers. For example, NordVPN’s server list shows thousands of servers across 60+ countries, all using datacenter IPs unless specified otherwise.
Streaming Blocks: Posts on X and web articles frequently discuss how streaming services block VPNs, often citing datacenter IP detection as the cause. For instance, Netflix’s VPN ban relies on identifying IP ranges from providers like AWS.
Residential IP Providers: Companies like Luminati (now Bright Data) or Oxylabs advertise residential proxy networks, emphasizing their use for bypassing blocks, which aligns with the content’s claim that residential IPs are less common in traditional VPNs.
Privacy Concerns: Past controversies around P2P VPNs like Hola (criticized for selling user bandwidth) validate the content’s caution about “shady” IP-sharing models.

Conclusion
The provided content is accurate and well-grounded in how VPNs operate. It correctly identifies datacenter IPs as the standard for most VPNs due to cost and scalability, while residential IPs are a specialized, less common option for bypassing restrictions. The privacy concerns about P2P setups are also valid, reflecting real risks in certain VPN models. If you’re picking a VPN, consider your needs: datacenter IPs are fine for general use, but residential IPs might be worth the extra cost for specific tasks like streaming or accessing restricted sites. Let me know if you want me to dig deeper into any part of this!