VPN vs. Tor is interesting. Both encrypt data before it leaves your computer. Simply put:
A VPN provider can see most of what you do online, just as an ISP can when not using a VPN. So trust is shifted. But, you can shop around and try to find a trustworthy VPN provider. Here in the US, thanks to the corruption in our government, most people have no choice when it comes to ISP.
Tor tries to get rid of the need to trust a VPN provider. Like a VPN, Tor sits between you and the ultimate destination of your data. Tor involves three randomly connected computers (out of a pool of thousands), the one you connect to (Tor entry node), a middle one and the third one (Tor exit node) which does the final decryption and sends your data out to the Internet in the same form it would have been without Tor. The Tor entry node knows who you are (from your IP address) and the Tor exit node knows where your data is really going, but no Tor computer knows both. The down side (other than speed) is that you can not shop around for a trustworthy Tor exit node. It is reasonable to assume that spy agencies run some of them.
A VPN provider can see most of what you do online, just as an ISP can when not using a VPN. So trust is shifted. But, you can shop around and try to find a trustworthy VPN provider. Here in the US, thanks to the corruption in our government, most people have no choice when it comes to ISP.
Tor tries to get rid of the need to trust a VPN provider. Like a VPN, Tor sits between you and the ultimate destination of your data. Tor involves three randomly connected computers (out of a pool of thousands), the one you connect to (Tor entry node), a middle one and the third one (Tor exit node) which does the final decryption and sends your data out to the Internet in the same form it would have been without Tor. The Tor entry node knows who you are (from your IP address) and the Tor exit node knows where your data is really going, but no Tor computer knows both. The down side (other than speed) is that you can not shop around for a trustworthy Tor exit node. It is reasonable to assume that spy agencies run some of them.