Hi,

what he maybe means is called Local Peer Discovery [1] and many
peer-to-peer software (like Azureus, Transmission) have this to discover
peers running on the local network. This makes sure that the peers are
not connecting over the public IP/interface (ppp0) but instead on the
private IP/interface (e.g. eth0).

E.g. in a NAT-ed environment with port forwards, a local host NATed by
the router cannot connect back to itself or any other (except services
on the router) peers over the public IP number. But of course, if no
firewall rule forbids this the host can connect to other "locally"
running hosts on the private IP number.

Regards,
Roland

[1]: http://en.wikipedia.org/wiki/Local_Peer_Discovery

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