Here's how Tor works:
1.) You send an encrypted message to one "node". The node can't read what's being sent.
2.) That node sends a message to another node, and that one sends it to an "exit node". The exit node gets the file you want from the web.
3.) The exit node sends it back through the nodes it came from to you, encrypted all the way.
Let's look at this from an attacker's point of view.
Say the attacker can read what's being sent to and from your PC. It's encrypted, so it doesn't matter.
Say the attacker can see what's being sent to and from the exit node. They still have nothing, because they can't see that whatever it is was sent from your PC.
Say the attacker has control of all 3 nodes and can see what's coming in and out of your PC. You are screwed. However, with hundreds of nodes, the chance that you'll land on 3 compromised nodes is minimal, and if you use HTTPS, they won't be able to see what you're looking at anyways!
@Wall: It's spelled "Tor", even though it started as an acronym. I don't know why.
morronKing wrote:How can one be certain that he will not be found, is there some list of logfiles or other traces that once cleared tracing of entry becomes impossible.
It isn't perfect, but this will help:
Just fuck up their logfiles as much as you can. It'll take sssooooo much longer to find you if you use something like the UNIX "shred" command on their logs.
Good luck,
3vilp4wn