eclipse network connection what is difference between native, direct, manual drop down options

Option

Description

Default

Active Provider	Specifies the settings profile to be used when opening connections. Choosing the Direct provider causes all the connections to be opened without the use of a proxy server. Selecting Manual causes settings defined in Eclipse to be used. On some platforms there is also a Native provider available, selecting this one causes settings that were discovered in the OS to be used.	Native (if present)
Manual (otherwise)
Proxy entries	The table displays entries that are available for all providers. Checkboxes in the first column of the table indicate entries to be used for the currently selected provider.	 
Proxy bypass	Use this table to specify, either by name or pattern, which hosts should not use any proxy. A direct connection will always be used for matching hosts. Checkboxes in the first column of the table indicate entries to be used for the currently selected provider.

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not clear on above

Choosing the Direct provider causes all the connections to be opened without the use of a proxy server. Selecting Manual causes settings defined in Eclipse to be used. On some platforms there is also a Native provider available, selecting this one causes settings that were discovered in the OS to be used.

Manual means whatever username and password i gave there in eclipse it takes right which kind of make sense.

What is proxy server they are talking.
Please advise

Both comments are valid.