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127.0.0.1 is the standard IPv4 loopback address used by operating systems to route network traffic back to the same machine. Traffic sent to this address stays inside the local network stack and never goes out over a physical network interface. Developers use it to run and test web and mobile services locally, since it isolates the server to the host machine unless explicitly configured otherwise.
Localhost is the standard hostname that refers to a machine's local loopback network interface. It typically resolves to the IPv4 address 127.0.0.1 (and ::1 for IPv6) and is used to access network services locally without leaving the host. In web and mobile development you use localhost to run and test servers, APIs and dev tools; be aware of the difference between binding to 127.0.0.1 (local-only) and 0.0.0.0 (all interfaces).
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