Understanding localhost

Everyone has used localhost. But few have explicitly thought about and written down what it really means. 

localhost is a reserved domain name that the OS maps to itself; typically 127.0.0.1 for IPv4 and ::1 for IPv6.

It bypasses DNS as requests to localhost never go out to the Internet. The OS resolves it internally.

Localhost traffic is routed through a virtual network interface that loops packets back into the machine without touching any physical network hardware.

Developers run local servers (e.g. localhost:3001) to test code quickly, safely and without exposing anything to the Internet.