Onion routing is a technique for anonymous communication over a computer network. Messages are repeatedly encrypted and then sent through several network nodes called onion routers. Like someone peeling an onion, each onion router removes a layer of encryption to uncover routing instructions, and sends the message to the next router where this is repeated. This prevents these intermediary nodes from knowing the origin, destination, and contents of the message.
Onion routing was developed by Michael G. Reed (formerly of Extreme Networks), Paul F. Syverson, and David M. Goldschlag, and patented by the United States Navy in US Patent No. 6266704 (1998). As of 2009, Tor is the predominant technology that employs onion routing.
Read more about Onion Routing: Capabilities
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