We can read that Monero possesses significant algorithmic for blockchain obfuscation. In what way it protects users from reading the data from the blockchain?

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There are two main protections from Cryptonote: Untraceability ( provided by Ring Signatures ) and Unlinkability ( provided by Stealth addresses ).

Detailed information in the Cryptonote website.

Monero went further following researchers recommendation and added a forced minimum of 2 mixing for a transaction ( to be bumped to 4 ) and is going to implement Confidential Transactions in the near future further obfuscating the already hard to guess exact amount of coins in a determined transaction.

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