What is VPS? How does it work?
What is VPS?
VPS (Virtual Private Server) is a hosting service that uses virtualization technology to provide you with dedicated (private) resources on a server with multiple users.
How does it work?
To segregate your physical server into multiple virtual servers, your hosting provider requires virtualization software, known as a hypervisor. The hypervisor acts as a virtualization layer. It essentially extracts resources on the physical server and lets your customers have access to a virtual replica of the original server. This server is known as a Virtual Machine (VM). Each VM has its own dedicated resources like CPU, RAM, OS, and individual applications.
As you can see from the above diagram, in the virtual architecture a single physical server is divided into three separate servers and there is a layer of virtualization between the operating system and the physical server. Also, all these servers are isolated from each other.
main resource: https://blog.resellerclub.com/how-does-vps-hosting-work-and-how-to-setup-a-vps-server/