RedPhone is now Open Source
whispersys.com
whispersys.com
See what they did and do with Jacob Appelbaum
While Tor and RedPhone might be considered to be in the same class of consumer security software, I don't think it's fair to draw comparisons to Appelbaum.
...and he doesn't even write software!
There doesn't seem to be any details on the app's website.
Read "Encryption Protocols" (uses ZRTP -see rfc6189- for key negotiation). Although I'm not sure I understand what is this about, I didn't notice at first it is VoIP :)
The assumption is that it is hard for an attacker to forge and inject a believable conversation into an ongoing real time conversation.
This is call SAS or Short Authenticated Strings and I believe it was introduced in the paper 'Secure Communications over Insecure Channels Based on Short Authenticated Strings' (the pdf can be found off of google). You can read about it here: http://en.wikipedia.org/wiki/ZRTP#Authentication
Apparently, most cell phone network providers disallow direct peer-to-peer communication, thus the relay server is necessary to complete this kind of encrypted call. All of your encrypted voice data will pass through the relay server, so there isn't going to be much privacy in terms of who you are talking to at what times, but the contents of your voice call won't be revealed.
It should be live by now.