What Apple Tries To Solve With iCloud Private Relay

Hi Apple Community,

I was amazed by Apple's Concept of iCloud Private Relay hiding the user privacy to the website and tracking tools based on IP.

But I have a doubt Regarding Please Correct Me if I'm Wrong,

I was connecting to my wifi router in my House through Mac Which just distributed a Private IP to my machine using DHCP, then I noted down my Router's Public IP. Then just had a look at IPChicken to check if my Router's Public IP is reflecting there surprisingly I can't see it there I can See only my ISP's IP Which is Located at least 10-20 KM away from my Place. I hope it will be the same behaviour even if I connect to different Wifi Routers

As Mentioned in WWDC 23 regarding iCloud Private Relay There is a option called ‌Maintain general location  which always makes the Network Request from iOS with the same exgress proxy that is in my city.

In my above case here only the ISP can able to track that too the Router's Activity not the users within the subnet ( As they are protected by their Private IP's and NAT capabilities ) . And I Feel It is a safer form and noBody can track Me based on IP.

May I Know What iCloud Private Relay Trying to do here as IP Tracking is Nearly Impossible Over here