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How does tor encrypt my data?



Inspired by the principle of tor, we intend to develop a distributed data base which could maintain privacy preserving.
 
But I still have some questions about how does tor work, especially how does it encrypt my data?
 
We know that there is an entrance node and an exit node in a path, cleartext is sent out from the exit node to the destination that we are aimed at. If so, my original cleartext could be revealed to the exit node? If my data is encrypted on my PC by the tor I runned, how does the exit node decrypt the ciphered text? How does it get the decrypt key?
 
Another question is what kind of cryptology algorithm tor uses, RSA? or others?
 
Thank you very much for replying!!!