Here is some info on types of VPN setups
1. Nested VPN
What it is: Two (or more) VPN clients run on the same device (or inside a VM/container on that device).
How traffic moves:
Device → Inner VPN (Provider B) → Outer VPN (Provider A) → Internet
Key points:
Gives you full control over each provider and protocol.
Often causes routing conflicts; many mobile OSes allow only one active VPN tunnel, so true nesting usually works only on desktops or within VMs.
Adds extra latency and CPU load because packets are encrypted twice.
2. Chained (Double‑Hop) VPN
What it is: The provider links two of its own servers back‑to‑back. From the user’s perspective there is still just one VPN client.
How traffic moves:
Device → Single tunnel to Server 1 → Server 1 forwards (re‑encrypts) to Server 2 → Internet
Key points:
No routing conflicts on the client side.
You’re limited to the provider’s preset hop pairs.
Slightly higher latency, but setup is trivial for the user.
3. Cascaded VPN
What it is: The user stacks multiple independent VPNs across separate network layers (router, VM, separate device).
How traffic moves:
Device → First VPN (Provider A, e.g., on router) → Second VPN (Provider B, e.g., on laptop/VM) → … → Internet
Key points:
Maximum flexibility: you pick each hop’s provider, location, and protocol.
Requires extra hardware or virtualization (router firmware, VM, etc.).
May encounter double‑kill‑switch issues and higher cumulative latency
Source: Lumo private AI