VPN allows for secure communication over public networks through tunneling protocols like PPTP, L2TP, and IPsec. There are three main types of VPN implementations: intranet within an organization, extranet between an organization and outside users, and remote access for mobile users. VPNs provide advantages like reducing costs of long-distance lines and charges while allowing flexibility and efficiency. However, they also have disadvantages like requiring expertise in security issues and performance depending on external factors. Industries like healthcare, manufacturing, retail, and banking commonly use VPNs to securely transfer private information between locations.