Tor (The Onion Router) routes internet traffic through a series of volunteer-operated relays, encrypting it in multiple layers. Each relay only knows the previous and next hop. No single point in the network knows both the origin and the destination.
Tor provides stronger anonymity than a VPN for specific use cases. Unlike a VPN, there is no single provider who knows your IP and your destination simultaneously.
Trade-offs: significantly slower, some sites block Tor exit nodes, does not protect against application-level identification (logging in identifies you regardless of Tor), does not protect against compromised devices.
What it means in practice
Tor routes traffic through three relays, encrypting it at each hop. No single relay knows both the source and destination. It significantly increases anonymity but reduces speed and can attract attention in environments where Tor use is monitored or blocked. Browser fingerprinting, JavaScript, and account logins can all de-anonymise Tor users. Tails OS routes all traffic through Tor and leaves no traces on the device.
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