A proxy is a type of encryption service that encodes your Internet connection's IP address, allowing you to use the Internet anonymously. If you want to use your iPhone 3G like a proxy server, you will need to enable the native proxy settings on your Wi-Fi connection. Note that an iPhone 3G can only be used as a proxy server when connected to Wi-Fi; 3G network connections with the device will not apply to these settings.
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Turn on your iPhone 3G.
Tap the small blue arrow button next to the listing for the Wi-Fi network your iPhone 3G is currently connected to.
Scroll down to the bottom of the page now open on your iPhone 3G, which will reveal the "HTTP Proxy" portion of the screen. Tap the "Auto" button to turn on and automatically configure your iPhone 3G's proxy settings. Tap the "Home" button to return to your iPhone 3G's main menu.
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