For the destination server, the last Tor node/exit relay appears as the origin of the data.

One encryption layer is decrypted at each successive Tor relay, and the remaining data is forwarded to any random relay until it reaches its destination server. Tor works on the concept of ‘onion routing’ method in which the user data is first encrypted and then transferred through different relays present in the Tor network, thus creating a multi-layered encryption (layers like an onion), thereby keeping the identity of the user safe.

The United States Government mainly funds it, and further aid is provided by the Swedish Government and different NGOs & individual sponsors. is a non-profit organization that currently maintains Tor and is responsible for its development.

Further development was carried under the financial roof of the Electronic Frontier Foundation (EFF). The alpha version of Tor, named ‘The Onion Routing Project’ or simply TOR Project, was developed by Roger Dingledine and Nick Mathewson. Reed and David Goldschlag at the United States Naval Research Laboratory in the 1990’s. Tor is based on the principle of ‘onion routing’ which was developed by Paul Syverson, Michael G. Tor’s intended use is to protect the personal privacy of its users, as well as their freedom and ability to conduct confidential communication by keeping their Internet activities from being monitored. Using Tor makes it more difficult to trace Internet activity to the user: this includes “visits to Web sites, online posts, instant messages, and other communication forms”. Tor directs Internet traffic through a free, worldwide, volunteer overlay network consisting of more than seven thousand relays to conceal a user’s location and usage from anyone conducting network surveillance or traffic analysis. The name is derived from an acronym for the original software project name “The Onion Router”. Tor is free software for enabling anonymous communication.

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