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Re: exit node back to user

Geoffrey Goodell wrote:
A subtle but important clarification: the term "entry node" refers to
the first node in a circuit.  Your Tor client, which listens on
localhost, is not an "entry node"; it is not one of the three Tor
routers in the circuit.  However, your Tor client does represent the
endpoint of the circuit, and the connection between your client and the
first node in the circuit is encrypted.

     I meant like this:

My Computer-----------------*Local Tap-*-------------------[first node]------ ------- -------Destination

I think you meant traffic going out from My Computer is encrypted, so *Local Tap *can't read it. Right?
*Traffic coming back from Destination must pass through [first node], *Local Tap*, before reaching My Computer. Please clarify, does *Local Tap* see unencrpted traffic between [first node] and My Computer?