Native Onion Routing

Definition ∞ Native Onion Routing is a privacy-enhancing network communication protocol where data is encapsulated in multiple layers of encryption, similar to an onion. This layered data is then routed sequentially through several network nodes, each of which decrypts one layer to reveal the address of the next node. This process obscures the original source and final destination of the communication. It provides strong anonymity.
Context ∞ Native onion routing is a key architectural component in privacy-focused cryptocurrencies and decentralized communication networks. It helps anonymize transaction origins and user identities, enhancing censorship resistance and user privacy. News reports often discuss the ongoing development and deployment of such routing protocols, particularly in the context of balancing privacy features with regulatory compliance concerns in digital asset ecosystems.