Some examples to understand how it works

The Lightning Network uses source-based onion routing with the SPHINX protocol to enable private, censorship-resistant payments. The sender controls the entire routing path while intermediate nodes only see their immediate neighbors, ensuring transaction privacy across the network.

1. Introduction: What is Onion Routing?
2. Source-Based Routing: The Sender is in Control
3. Constructing the Onion: Layer-by-Layer Encryption
4. Intermediate Nodes: Limited Visibility by Design
5. Privacy Guarantees
6. Technical Implementation Details
7. Complete Example Walkthrough
8. Advanced Topics
9. Security Analysis
10. Resources and Further Reading

...read more at massmux.org