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When your PS3 is configured to use a proxy, it sends its requests for data to the proxy rather than directly to the internet. The proxy then forwards these requests to the destination, receives the data, and passes it back to the PS3.
The Android proxy method remains the only cost-effective, non-invasive way to accelerate downloads and capture links on an unmodified PS3 console. Ps3 Proxy Server For Android
Why is this useful?