I2p is a closed network where everyone participates and using cryptography packets are encrypted so so only the destination can reason them. All packets are sent through short lived tunnels which are connections of various nodes in the network that change at every so often.
You traffic never hits the main internet. Its a full darknet with a torrent network system , email, websites, private encrypted messaging and more built on top of it.
So they are all encrypted. Nobody knows the IP of anyone else
I'm looking up I2P vs VPN and people are saying that I2P cannot replace VPN but I fail to understand why. Can I get some more insight to that?
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