This is such a fun topic that I must grab myself another vodka before starting in on it...
Yes, it's possible, but why would you want to?
It will slow down your transfers a lot.
Anytime encryption is involved, I assume performance will be sacrificed (that's just the nature of making any given workload bigger than it was to start with). Out side of that, is there and additional performance hit?
Yes. The way the network works is to route traffic through many clients. This slows down traffic much more than a normal connection.
If you could get the TOR client to act as a proxy server, then route everything through that, tada!
think I'm missing the distinction. A proxy is/would be at the network edge anyhow ... So why not just make it the router and then let the servers (only) bypass the Onion part?
However you work it out, your LAN connects to the WAN. TOR acts to route traffic through its network on the WAN. So no matter what, if you're using it as a proxy from inside the LAN or setting it up as a kind of router, the effect is the same.
If you're looking for anonymity, try www.iPredator.se. It's a VPN with no client records kept. They don't keep payment info, and they don't keep logs. It also slows down though. But it's easy.
I don't really have anything specific to hide ... I'm just curious about the technology ... And was thinking of doing some "Live Fire" testing with it.
It's been a while, but I think you can do what you're looking to, but again, if I remember properly, you'll need some C++. The source is available.
Check out the bottom of the download page:http://www.torprojec...oad/download.html.en
They have a lot of information there that can provide hints on how it works and insight into what you're looking to do.
I've also been seriously thinking of switching ISPs (to a fiber connection) and a Linux box flavored router solution might be fun when I do it.
I also weep... with jealousy... I used to live in Gangnam Gu in Seoul, with the fastest residential connections on the planet... and I miss them terribly...
Anyways, I hope that helps point in the right direction somewhat.