Microsoft has finally fixed a very old issue with Skype. Almost 4 years ago, it became known that there was a security and privacy breach in Skype's VoIP service which could allow an attacker to get the IP address of Skype users. Recently Microsoft added the ability to hide the IP address from the Skype app and now this option has became enabled by default.
While the average user might not even care about his IP address, gamers and online steamers might suffer from this vulnerability. Their opponents could easily get the streamer's IP and kick them out using a DDoS attack.
Without the fix, everyone could resolve Skype's login name to the person's IP address.
While Microsoft was not prompt in fixing the vulnerability, they finally fixed it. You can download the latest Skype version HERE.
Microsoft acquired Skype in 2011. Back then, Skype was using peer-to-peer network technology under the hood. Microsoft removed the peer-to-peer connections and turned Skype into centralized service controlled by them. The whole infrastructure is now located on their servers, so Microsoft exclusively maintains your connections and keeps the service alive.
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The option to hide the IP from at least your contacts has existed on Skype for Windows desktop for years now. I don’t know why it’s being referred to as something “new” (except for it being enabled by default now).
And Microsoft killed the old Skype protocol in favor of an updated version of the protocol MSN Messenger/Windows Live Messenger and Windows Messenger (the basic version included with Windows XP) used.