To establish connection with Tor node I need to send my IP address. Otherwise it will not know where to send reply. How is this better than ssl connection over proxy? Is this only helpful as obfuscation scheme because it's impossible for government to have access to all tor nodes?
I read about encryption of application layer. But some node needs to receive unencrypted version for the whole onion routing to initiate. If government would ask access to this node the whole process would be exposed.