How accurate is geolocation with masked IP addresses in Matomo?

Question

I am wondering why an accurate location (like "Berlin") is saved with a masked IP address in Matomo. Is the IP address used to get the location and afterwards masked?

Thanks to Damien you find here all information about the anonymisation. As written in this documentation the process seems to be the following:

1. The visitor accesses the website with an IP-address
2. The visitor data is enriched using the setting of the radio button "Also use the Anonymized IP addresses when enriching visits", see here (step 1)
3. The enriched data will be saved together with the IP address (as anonymized as selected here (also step 1)

To receive better geolocation results it is possible to use Geo-IP-databases with Matomo, f.e. the one of Maxmind, see here. To use other databases you may find more information here.