What is 127.0.0.1

127.0.0.1 is the standard IP address used for a loop back network connection.
This means that if you try to connect to 127.0.0.1, you are immediately looped back to your own machine.

If you telnet, ssh, ftp, etc... to 127.0.0.1, you are connected to your own machine.
In other words, 127.0.0.1 is you.
Another name for 127.0.0.1 is localhost.