It works simply like this:
1. You have to setup a collection of peer to peer proxy. It is rather a large collection of free accessing nodes.
2. The routing protocol will setup a virtual path through proxy nodes.
3. Each node forward encrypted packet to next hop using its own protocol.
Above scheme is really simple idea, the real system is far complicate than that.
Currently, the anonymous network only provide low bandwidth because it involve individual's computer as router. Web browsing and Skype streaming are OK, but not for video streaming.
As I posted before, WXC explict anonymous poster. I posted one testing message before that and fail to add it into the forum. That gives me the hint that WXC web doesn't allow anonymous IP for any poster. :)
You can really use this kind of network to brows restrict web from your company. Your manager can trace your accessing IP because it is encrypted.