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with just goal to better understand where tor interferes and where it hides my browsing from ISP, please look at this picture which just explains how to computers communicate.

enter image description here

You can check on step 6 they mention ISP knows which computer I want to talk to.

Say I want to talk to site www.hello.com using Tor. Now how would this flow go, would in step 6 ISP not see, www.hello.com anymore? what would it see then?

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Tor works by routing the traffic through many nodes between you and the host. Here is a good diagram

enter image description here

  • and i thought i had asked very specific question – user117640 Jul 23 '16 at 20:37
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    @user200300 In Nick's linked diagram, you are Alice, and www.hello.com is Bob. You are concerned with whether your ISP, which controls the first green link out from Alice, can see that you are trying to communicate with Bob. The answer is no, the ISP only sees that you are trying to reach the first Tor relay identified with a green cross. Your ISP no longer knows the ultimate destination of this communication. – user4556274 Jul 23 '16 at 20:40
  • @user4556274 I see, interesting. Same goes if I use vpn for browsing privacy? – user117640 Jul 23 '16 at 20:48
  • @user200300 Correct. In that case the ISP would see the VPN server as the destination of your communication. Note that in either case your ISP could see what you were doing -- using tor, or using a vpn service. – user4556274 Jul 23 '16 at 20:53
  • @user4556274 how could it see if my connection with first node is encrypted with tor and vpn too? – user117640 Jul 23 '16 at 21:05

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