Hello
Thanks for reaching out.
In my experience its loopback device is a special, virtualnetwork interface that your computer uses to communicate with itself. It is used mainly for diagnostics and troubleshooting, and to connect to servers running on the local machine.
The loopback interface does not represent any actual hardware, but exists so applications running on your computer can always connect to servers on the same machine.
This is important for troubleshooting (it can be compared to looking in a mirror). The loopback device is sometimes explained as purely a diagnostic tool. But it is also helpful when a server offering a resource you need is running on your own machine.
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