Proxy chaining is a way of being anonymous on the Internet or to access information that is not accessible in your country/region. Though it wont make you 100% anonymous but still helps to protect your identity.
Proxies are just ip address of different machines in different regions which passes your request and make the content available to you.
Basically in proxy chaining a user setup several proxies on his machine then he made a request on Internet from his own machine. Then the request will be sent to first proxy then second then third and when request reaches to last proxy it complete request and sent the data back to original machine.
Usually free proxies are very slow and they are down most of the time. Paid proxies are usually fast but in this case user might lost his anonymity if he pay electronically. Company may revel his real information if something goes against the law and police asks for that person information. Laws differ from country to country so try to use proxy of that country which doesn't have strict cyber laws.
A user can become absolute anonymous if he uses many proxies. As proxies are usually very slow then just to load a simple Web page it will take more than enough time you can give if you use many proxies.
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