How does an anonymous proxy enhance user privacy?

An anonymous proxy enhances user privacy primarily by hiding the user's IP address. This function is crucial for maintaining anonymity online because the IP address is a unique identifier that can reveal a user's location and browsing activities. When an anonymous proxy is used, it acts as an intermediary between the user and the internet, masking the real IP address and replacing it with its own. This way, websites and online services that the user interacts with cannot trace back to the user's actual IP address, thus providing a layer of privacy.

While some proxies may also include encryption capabilities, this is not the defining characteristic of an anonymous proxy. The primary focus is on concealing the user's IP address to protect their identity and location, making it more challenging for tracking and profiling. Other options mentioned, such as blocking all external connections or requiring multiple authentications, do not directly contribute to the enhancement of user privacy in the context of using an anonymous proxy.