VPN or Smart DNS or Proxy – what are they exactly? Well, a smart DNS, in particular, is a variation of the proxy server. DNS stands for Domain Name Server and it works sort of like a telephone operator. When you’re trying to access a website, the DNS accepts the site’s name and searches for the server’s network address. Then, it effectively connects you to the correct site. Most ISPs offer a DNS server but this usually means that your public IP address will be visible to the receiving server.