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Although localhost is sometimes used as synonymous with package programs such as WAMP, XAMPP, or EasyPHP, this is also an incorrect definition. These programs broadcast using localhost as well as with other IP addresses defined on the computer.

The term Localhost refers to the computer on which a program is running. It is a loopback device that is assigned IP Address 127.0.0.1 in IPv4 (::1 for IPv6) and used to enable the computer to access it over TCP/IP.

Being able to communicate with the current machine as if it were communicating with a remote machine is useful for testing purposes, as well as for using features located on the current machine, but which are expected to be remote.

After briefly explaining what is localhost, what it means, I am going to provide detailed information and working logic that will clarify the definition.

Full Article Source: https://www.temok.com/blog/what-is-localhost/

Localhost is a hostname that means this computer. It is used to access the network services that are running on the host via the loopback network interface. Using the loopback interface bypasses any local network interface hardware. Simply put, to simulate a server on your machine, where the same computer is the server and also the client.

It is the loopback address of a machine, which describes the local computer address. This allows network admins to block websites (by looping back to the same computer) and to do speed testing of various network components and endpoints e.g. desktops and testing of networked programs by developers, QA engineers e.t.c