Authentication that occurs during the creation of a PPTP-based VPN connection uses the same authentication mechanisms as PPP connections, such as Extensible Authentication Protocol (EAP), Microsoft Challenge-Handshake Authentication Protocol (MS-CHAP), Microsoft Challenge-Handshake Authentication Protocol version 2 (MS-CHAP v2), CHAP, Shiva Password Authentication Protocol (SPAP), and Password Authentication Protocol (PAP). PPTP inherits encryption, compression, or both of PPP payloads from PPP. For PPTP connections, EAP-Transport Layer Security (EAP-TLS), MS-CHAP, or MS-CHAP v2 must be used for the PPP payloads to be encrypted using Microsoft Point-to-Point Encryption (MPPE).
VPNs secure your traffic and route it through an intermediary server so it can’t be traced. But if privacy is not of chief concern to you, then there are other alternative proxy methods that offer faster speed. A SOCKS proxy, for example, does pretty much the same thing as a VPN without the encryption. Without having to encrypt and decrypt traffic, SOCKS proxy users can get faster speeds and still mask their IP address.
When you're away from home or the office and you connect to the internet, you'll most often be doing so via Wi-Fi provided by your hotel or the restaurant, library, or coffee shop you're working out of in that moment. Sometimes, the Wi-Fi has a password. Other times, it will be completely open. In either case, you have no idea who else is accessing that network, and therefore, you have no idea who might be snooping on your traffic.
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The second thing that happens is that the web application you're talking to does not get to see your IP address. Instead, it sees an IP address owned by the VPN service. This allows you some level of anonymous networking. This IP spoofing is also used to trick applications into thinking you're located in a different region, or even a different country than you really are located in. There are reasons (both illegal and legal) to do this. We'll discuss that in a bit.
My rule of thumb is to use a domestic VPN and connect to servers as close to my location as possible. That said, I have had good nights and bad nights getting online. In my recent trip, I found most hotels' networks to become unusable after about 9pm. My theory is that many of the guests were watching Netflix at that time, completely clogging the hotels' pipes.
First and foremost, using a VPN prevents anyone on the same network access point (or anywhere else) from intercepting your web traffic in a man-in-the-middle attack. This is especially handy for travelers and for those using public Wi-Fi networks, such as web surfers at hotels, airports, and coffee shops. Someone on the same network, or the person in control of the network you're using, could conceivably intercept your information while you're connected.