Could someone explain the importance of using loopback interfaces?  I keep
reading that it is important when using routing protocols to use loopback
interfaces.  A consultant that is writing documentation for me suggested I
obtain an entire class C network just for loopback addresses.  Cisco says
when configuring BGP that, "We recommend you use a loopback interface to
guarantee reachability in networks with multiple paths."  (from
http://www.cisco.com/warp/public/459/23.html#3).

Maybe I'm missing something totally obvious here, but exactly what benefit
do I gain from using loopback addresses?  I know it is supposed to provide
reliability for routing protocols, but how?

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