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In the tor manual under socks port it states “The SOCKS protocol is unencrypted and (as we use it) unauthenticated”

Does the socks protocol used in the loop back interface only or does the Socks protocol cross the WIFI or Ethernet network interface boundaries? If it does then is it protected by the TLS or bridge encryption that is used from your computer to the first hop.

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It's only on the local loopback interface, the unencrypted connection is made purely locally. It traverses any local network resources encrypted. Note however that anything you send into the Tor network unencrypted will leave the Tor network unencrypted, so you should still be opting for using TLS (https) or some other form of transport layer encryption.

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