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The address 127.0.0.1 is the standard address for IPv4 loopback traffic; the rest are not supported by all operating systems. However, they can be used to set up multiple server applications on the host, all listening on the same port number. In the IPv6 addressing architecture [3] there is only a single address assigned for loopback: ::1. The ...
RFC 2663 uses the term network address and port translation (NAPT) for this type of NAT. [4] Other names include port address translation (PAT), IP masquerading, NAT overload, and many-to-one NAT. This is the most common type of NAT and has become synonymous with the term NAT in common usage.
The older method was for the mail server to recognize the client's IP address, e.g. because the client is on the same machine and uses internal address 127.0.0.1, or because the client's IP address is controlled by the same Internet service provider that provides both Internet access and mail services.