This way, internet traffic is encrypted and routed through nodes throughout the overlay network. Tor won't hide the transaction's path, but bitcoiners using the Tor network can make it extremely hard for investigators to pinpoint their IP address and geolocation.
The Overlay Network Known as Tor
When Satoshi Nakamoto launched the Bitcoin network, the creator did not make the protocol anonymous. The network is not private and all the transactions broadcast over the network are available to see by anyone with a copy of the blockchain. However, the technology is pseudo-anonymous and when transacting with a cryptocurrency like bitcoin cash, users can add a few levels of privacy to obfuscate BCH transactions. One privacy method cryptocurrency proponents use is the Tor protocol, an overlay network consisting of thousands of nodes that conceal a user's location. If a person were to send a bitcoin cash transaction using the Tor network it would help encrypt and route the web traffic, which essentially hides the user's location and internet provider (IP).
Tor, or 'onion routing', was created around the mid-1990s. Links to download Tor and resources concerning how the protocol works can be found here.
People can download the Tor software for Windows, Mac, and GNU/Linux from the official website. Tor is about 64MB in size and downloads quickly from the server depending on your internet speed. The program can run immediately after the install but it can also be installed to a USB flash drive. Tor comes with its own web browser that protects anonymity when it's used to surf the internet.