Remote computers don't allow just anyone on the net to connect to them. They need to make sure you are authorized to connect to the computer before they allow access to an application. So when you connect, you have to enter a password to authenticate yourself to the computer you are connecting to. That password is different from the password you used to register your hostname. Usually when connecting to a remote computer, you enter the username and password you would normally use to connect to it if you were sitting at its keyboard. You may choose a username and password to connect, but a user at the remote computer must manually accept your connection.

When you have connected to the computer itself, the application you are connecting to may require its own password.

Alice registers a hostname "FileServer.AliceCo.vpn.natnix.com". Bob runs VNC (a remote screen sharing application) and connects to "FileServer.AliceCo.vpn.natnix.com".

Bob's NatNix prompts him for a password to connect to Alice's server. Bob enters "bobuser/bobpassword" into the NatNix connect dialog. If the bobuser account already exists on Alice's server, Bob is allowed in. Otherwise, a dialog appears on Alice's server asking to grant Bob access with the "bobpassword" password. Alice must manually accept Bob's connection, unless his account already exists.

Once Bob's NatNix connection is established, his VNC application connects to Alice's VNC server (assuming it is already running.) VNC itself requires another password to connect, that Alice set up when she ran the VNC server for the first time.

Finally, Bob's VNC viewer is connected to Alice's screen.

Compare that with traditional VPNs where you have to set up a VPN server in each office (hardware and expert setup required) and manage IP addresses and passwords. NatNix has easy software setup and requires no hardware or changes to your existing network.