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Loopback is a method to test the performance and quality of a local area network (LAN). It involves routing electronic signals back to their source without intentionally processing them. A loopback address can test an ethernet card and software without using a physical network, even if drivers and hardware have become corrupted.

What Small and Midsize Businesses Need to Know About Loopback

An SMB might use a loopback address if it experiences LAN problems such as slow log-on times, poor internet performance or, timeout errors when using network resources. Loopback-related issues affect older network infrastructure as newer connections have in-built loopback protection.

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