Right now on the bitcoin network, there are a large number of fake bitcoin nodes which aggressively announce themselves in an effort to attract more people to connect to them. They are run by transaction surveillance companies and they spy on every newly-broadcasted transaction, tracking it as it propagates through the p2p network giving them an idea of the IP address that originally broadcasted that transaction.
One way to beat this is by broadcasting unconfirmed transactions through Tor. A new feature of Electrum Personal Server allows for this. When the user presses "Send" or "Broadcast" their transaction will transparently be broadcast through Tor and so will not leak their real IP address.
If you're a power user and especially if you send lots of transactions, you should help by trying out this feature. Here's how:Add walletbroadcast=0 to your bitcoin.conf file. Update to the master branch of EPS from github Run Tor Edit the config.ini file to enable tor broadcasting, with broadcast-method = tor and set tor_host and tor_port to point to your Tor application Send transactions
Tell me or someone if you need help. Let us know how it goes. If there's no problem then soon they'll be a new release with this feature included.
For more information read #52 or https://en.bitcoin.it/wiki/Privacy#Countermeasures_to_traffic_analysis
Technical explanation: This feature works by making its own connections to peers over tor and sending the transaction via that. It uses the RPC call getnodeaddresses to obtain addresses from bitcoind's addrman, and so it doesnt rely on centralized DNS seeds.