The localhost is the default name describing the local computer address also known as the loopback address. For example, typing ping localhost would ping the local IP address of 127.0.0.1 (the loopback address). When setting up a web server or software on a web server, 127.0.0.1 is used to point the software to the local machine.

Hosts file, IP address, Local, Loopback, Network terms, Ping, Reserved address space

The 127.0.0.1 IP address is the local one, not the IP address used by your computer to communicate with other machines on your network or the Internet.

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