How Loopback Address Works?
Every traffic that You are send to Loopback will come back. Let Suppose Your Ethernet device gets an IP address (192.168.1.2) From ISP(Internet Service Provider), and also Your Loopback Device or Network adapter will have an IP (127.0.0.1) always.
Loopback IP in IPv4
TCP/IP Recognize 127.0.0.1 as a Special IP address. 127.0.0.1 is an IP which is the Loopback Internet protocol (IP) address. 127.0.0.1 is also Known as LocalHost . IPv4 network Standards reserve the Entire 127.0.0.0 address block for Loopback.127 is the Network Number which is the last Network Number of Class A with a Subnet Mask 255.0.0.0. 127.0.0.1 is the First assignable address in the Subnet. It is assign in 1986 by Reynolds and Postel.
What's the Uses of 127.0.0.1?
127.0.0.1 is use to establish an IP Connection to Same Computer or Machine. 127.0.0.1 is although uses as Loopback Testing in All Cases