How exactly does something like Psiphon get around a blocked website?
A VPN and Proxy are essentially the same thing. There are different VPN and proxy protocols but they all work the same way, your packets go through a remote device before reaching their destination. I don't think a lot of people know what the literal definition of the word proxy is which is unfortunate because the best way to describe a proxy application is to call it a proxy.
Quote1: the agency, function, or office of a deputy who acts as a substitute for another
A proxy device (i.e. server) is acting as a substitute for your computer so it is browsing the website for you and just relaying what it sees to your browser. A VPN will encrypt the packets from your computer and mirror them on a VPN device (i.e. server) and whatever response it gets it mirrors back to your computer.
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