A proxy is a system, usually a computer, which accepts traffic from either specified users or publicly, and routes that traffic where desired.
Purposes can be to mask user, filter, reroute, etc.
For instance. I travel a lot, but am paranoid and afraid that you, the sneaky NDD, will kill me if you find out. Therefore I ask a friend in Italy to set up a proxy that accepts connections from only me.
When I setup my computer to use that proxy all traffic (can be for single application, or everything) will be routed through it. So, when I sign on to Professional Soldiers you will always see me as if I were in Italy, while in fact I could be anywhere. Because the IP is masked by the proxy.
SGOS is an OS (Operating System) designed specifically for gateway operation.
I suppose that the proxy you use has an outdated license of SGOS.
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