Definition
A multi-hop VPN routes traffic through more than one server before reaching the destination. With two hops, the entry server sees the user's real IP but not the destination, while the exit server sees the destination but not the user's real IP. With three or more hops, no single server sees both ends, and an adversary would need to compromise all of them to fully reconstruct a session.
Multi-hop vs Tor
Tor is conceptually similar but uses three relays operated by independent volunteers, with each layer of encryption peeled off at a different relay (onion routing). A multi-hop VPN typically uses servers operated by a single provider, which is faster but means the same organization runs all hops. The 'no single hop has the full picture' guarantee depends on the provider not correlating logs across hops — which a true no-logs operation cannot do anyway.
When to Use It
Multi-hop is appropriate when the threat model includes a single VPN server being compromised or compelled to log: investigative journalists, dissidents, security researchers handling sensitive material. For everyday privacy needs, the doubled latency and halved throughput are usually not worth it. Some providers also offer 'mixed multi-hop' where the entry and exit are on different providers, splitting trust at the corporate level — at the cost of considerable setup complexity.