What is NetShade?
NetShade is a program which protects your privacy on the Internet by routing your web connection through various HTTP Proxy servers. HTTP Proxy servers exist around the world, and many are open, anonymous and free. NetShade maintains a database of these servers, and sets your system to connect through them. This has the effect of concealing your IP address. Your IP can be potentially compromising information in the hands of a malicious user. It can also give people more information than they deserve to have about you, and this can be used for spam, spying, and hacking.
How does NetShade work?
NetShade uses MacOS X's standard system configuration framework. This makes it a very safe program to run. When NetShade changes your proxy settings, it's doing the exact same thing that you're doing when you open your System Preferences and change your proxy manually. In fact, if you have your System Preferences open while NetShade is running, you can see it changing your proxy.
Hackers are clever. Can't they still find my IP?
There's always a way, but NetShade makes it much more difficult. If a website really wants your IP, they may be able to get it by planting a JavaScript, Java Applet, or other executable content on your web browser. But few sites will go to this trouble just to get your IP address, especially when the vast majority of users are transmitting their IP in the open for all to see.
How do proxies work?
When browsing the web in a normal setup, your requests for web pages go directly to the server that you're trying to reach. Your request is then logged on that server, including your IP address, the type of browser you're using, the webpage that referred you to that site, the exact time of your visit, etc. A Proxy server acts as a middle man. When browsing the web through a proxy server, your webpage request goes to the Proxy. The Proxy then sends its own request to the site you're trying to reach, gets the data back, and sends it on to you. This middle-man model makes your web browsing much more secure. The sites you visit no longer have all your information. From their perspective, you appear to be whatever proxy you were using at the time. And because NetShade has the ability to switch between proxies automatically, your activities can't be tracked through any single source.