Why Tor allows to anonymize Internet traffic through onion routing, typically via 3 separate hops. At INS, we run one of the fastest Tor exit nodes in Austria, and provide statistical data on its usage. For more details, please check those project websites.
On my personal home network, I use Tor - among other reasons - to test various devices such as mobile phones, tablets, etc. with apps I do not necessarily trust, “smart home” / IoT style devices, or wearables.