The Onion Router (Tor) is an open-source software program that allows users to protect their privacy and security against a common form of Internet surveillance known as traffic analysis. Tor was originally developed for the U.S. Navy in an effort to protect government communications. The name of the software originated as an acronym for the The Onion Router, but Tor is now the official name of the program.
The main idea behind designing Tor was to protect the personal privacy of network users, and allow them to conduct confidential business. Tor is also widely used in location-hidden services to provide anonymity to servers.
Source: https://www.techopedia.com/definition/4141/the-onion-router-tor