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This paper presents a novel use of pairing-based cryptography to improve circuit construction in onion routing anonymity networks. Instead of iteratively and interactively constructing circuits with a telescoping method, our approach builds a circuit with a single pass. The cornerstone of the improved protocol is a new pairing-based privacy-preserving non-interactive key exchange. Compared to previous single-pass designs, our algorithm provides practical forward secrecy and leads to a reduction in the required amount of authenticated directory information. In addition, it requires significantly less computation and communication than the telescoping mechanism used by Tor. These properties suggest that pairing-based onion routing is a practical way to allow anonymity networks to scale gracefully.