A Loopback is a diagnostic test that returns the transmitted signal back to the sending device after it has passed through a network or across a particular link. The returned signal can then be compared to the transmitted one. The discrepancy between the two help to trace the fault. When trying to locate a faulty piece of equipment, loopbacks will be repeated, eliminating satisfactory machines until the problem is found. As a loopback is a communications channel with only one endpoint, any message transmitted through it is immediately received by the same channel.
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