A network connection between a client application and a database server on the same computer is called a local-loopback connection. The networking facilities used are the same as if the client application and the database server were on different computers. You can make a local-loopback connection provided your computer is equipped to process network transactions. Local-loopback connections are not as fast as shared-memory connections, but they do not pose the security risks of shared memory.
In a local-loopback connection, data appears to pass from the client application, out to the network, and then back in again to the database server. In fact, although the database server uses the network programming interface (TLI or sockets), the internal connection processes send the information directly between the client and the database server and do not put the information out on the network.
For an example of a local-loopback connection, see Using a Local-Loopback Connection.
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