exit node back to user

[halesnil]

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?