What is Loopback Address?

The IP address range 127.0.0.0 – 127.255.255.255 is reserved for loopback. Loopback IP address is managed entirely by and within the operating system. These addresses enable the Server and Client processes on a single system to communicate with each other. When a process creates a packet with destination address as loopback address, the operating system loops it back to itself without having any interference of NIC.

Data sent on loopback is forwarded by the operating system to a virtual network interface within operating system. This address is mostly used for testing purposes like client-server architecture on a single machine.

For example, if a host machine can successfully ping 127.0.0.2 or any IP from loopback range, implies that the TCP/IP software stack on the machine is successfully loaded and working.