LLARP Factors and Usage

Service nodes are underlaid with an anonymous routing protocol, defining the way each service node communicates with its peers. Loki uses a hybrid of Tor and I2P for their protocol. 

University of Connecticut

Onion routing protocols allow for users to form tunnels or paths through a distributed network, using multiple nodes as hops to obfuscate the destination and origin of data packets. Service Nodes on the Loki network operate a low latency onion routing protocol to form  a fully decentralized overlay network, called Lokinet. The network does not rely on trusted authorities and its state is fully derived from the blockchain 

LokiNet

https://loki.network/wp-content/uploads/2018/10/LokiWhitepaperV3_1.pdf

Loki Whitepaper

Low Latency Anonymous Routing Protocol

Each Service Node operator freezes Loki coins when they begin to operate a Service Node. This serves two purposes, which is used to enforce aggressive punishment for poorly behaving nodes. This forces groups of service nodes to come to a consensus on the status of the blockchain.

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