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For my understanding, usually establishing a connection with a hidden service involves two separate Tor circuits: one circuit for the visitor, but another full circuit for the hidden service.

This “Non Anonymous Mode” effectively omits the second circuit, and allows relays to connect directly to the hidden service’s IP address, thus significantly improving latency and reducing the strain on the Tor network?



That is correct, but note that not all tor nodes are exit nodes, so latency will be increased but troughput may even be better.


Ah right, so what you’re saying is that hidden services don’t need Exit relays for hidden services at all, and as such do not have the bottleneck issues that usually plague exit nodes.


Yes that's correct.




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