VPN (Virtual Private Network):
- Creates an encrypted tunnel between your device and the VPN server
- Your ISP sees encrypted VPN traffic, not your actual browsing
- The VPN server sees your traffic and forwards it to the destination
- One hop - fast but requires trusting the VPN provider
Tor (The Onion Router):
- Encrypts your traffic in 3 layers and routes through 3 random nodes
- No single node knows both your identity and your destination
- Decentralized - no single entity to trust
- Three hops - slower but no single point of trust