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Anonymous communication networks like Tor partially protect the confidentiality of their users' traffic by encrypting all intra-overlay communication. However, when the relayed traffic reaches the boundaries of the overlay network towards its actual destination, the original user traffic is inevitably exposed. At this point, unless end-to-end encryption is used, sensitive user data can be snooped by a malicious or compromised exit node, or by any other rogue network entity on the path towards the actual destination.
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