I'm trying to understand about the usage of loopback interfaces in routers. As far as I understand, whien I add a loopback interface and address in let's say, a Cisco router, I'm adding another address only accesible inside my device, like 127.0.0.1.
I've been reading lot's of posts and questions about this, my questions are:
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Loopback addresses are only reachable from inside that particular device right?
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Some people say that the use loopback interfaces for management, what are they talking about? Do they use those addresses for logging in into the routers? How does that work considering question 1?
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I've been reading that you can add a BGP peer using the destination loopback address/router-id. Again, How does that work considering question 1?
I think the answer to these questions is that you can somehow advertise loopback addresses to another devices so they can connect via that address but I don't unserstand how that could be possible.
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