Hamachi emulates the connection that would exist if the computers were connected over a local area network. For the product to work, a mediation server is required (LMI), which stores the nickname, maintenance password, statically-allocated 25.0.0.0/8 IP address and the associated authentication token of the user. As such, it can potentially log actual IP addresses of the VPN users as well as various details of the session, but not directly interfere or monitor the information transfer itself.