Tor and Cryptocurrency: Enhancing Privacy in Transactions
Tor is a decentralized network that anonymizes users’ web traffic by encrypting and routing it through a series of repeaters before it reaches its final destination.
What is Tor?
Originally called The Onion Router, Tor is a decentralized network that provides anonymity by encrypting Internet traffic and routing it through a series of servers before it reaches its final destination. The network also uses its own domain ".onion" through which users can provide access to websites and services that can only be accessed through the Tor network. The network is supported by the non-profit Tor Project, which has also released the Tor Browser, an open-source Internet browser that automatically routes traffic through Tor.
The network is perhaps most widely known for being used as a gateway for dark websites and markets accessible via ".onion" addresses. The most infamous of these marketplaces was the now-closed Silk Road, where users could anonymously purchase illicit goods such as drugs and fake driver’s licenses with Bitcoin (BTC). But Tor is also used by journalists, activists, dissidents, law enforcement, intelligence agencies, and others who need to remain anonymous online for their security.