How does the connection work?

Is the connection going over Jitsi Servers or is it by a local machine of the host?

Welcome to the forum.

I assume you’re asking about the public instance of Jitsi at meet.jit.si. If so, there are two types of connections possible:

  1. P2P - Peer to Peer connection - This is the default for connections between 2 participants. It does not go through Jitsi servers (per se)
  2. JVB - Jitsi VideoBridge connection - When you have 3 or more people, the connection goes through the bridge, so yes, his passes through Jitsi Servers. But there’s no user-data permanence in Jitsi, so no identifying user information is stored on the servers. Additionally, you can enable E2EE (End to End Encryption) to encrypt your communication over the bridge.