A loopback test is a test in which a signal in sent from a communications device and returned (looped back) to it as a way to determine whether the device is working right or as a way to pin down a failing node in a network. One type of loopback test is performed using a special plug, called a wrap plug, that is inserted in a port on a communications device. The effect of a wrap plug is to cause transmitted (output) data to be returned as received (input) data, simulating a complete communications circuit using a single computer.
In telephone systems, the signal sent as part of a loopback test is referred to as a loopback.
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