It acts as a bridge between the client and the web resource's server.
It is a built-in proxy on Windows Operation System that is connected with Microsoft Stream.
While searching for something on the web, your request comes to the server first, which gets this signal, finds the information that you need, and then sends you a page with all the information.
The local proxy can be understood as a simple proxy, which is a mediator that links data between some local computer and its user with larger types of networks, such as the web.