Should DNS server address of "127.0.0.1" be used when specifying same server as primary DNS server?

When adding the DNS server address of a server (and the server itself is a DNS server), is it preferable to add the IP address as "127.0.0.1" or should the server's actual IP address of 192.168.10.20 be used?

I have seen both types of IP addresses used and am wondering if there is an advantage of using one over the other or if there are any problems with using one IP address format over the other one.

This is in a Server 2016 environment.
IT GuyNetwork EngineerAsked:
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MASEE Solution Guide - Technical Dept HeadCommented:
127.0.0.1 is better.
Your name resolution is happening within the server itself.
Make sense?

Do not forget to install additional domain controller and add that server IP as additional DNS in NIC.

Cheers
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yo_beeDirector of Information TechnologyCommented:
The transaction is so quick it really does not matter.
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Greg StringerCommented:
Microsoft's recommendation is not to use the loopback address as the primary DNS server on the server.

https://technet.microsoft.com/en-us/library/ff807362(v=ws.10).aspx

This article states:
Issue

    The network adapter does not list the loopback IP address as a DNS server, or it is configured as the first DNS server on this adapter.

The loopback IP address should be configured as one of the DNS servers on each active network adapter, but not as the first DNS server.
Impact

    If the loopback IP address is the first entry in the list of DNS servers, Active Directory might be unable to find its replication partners.

The inclusion of its own IP address in the list of DNS servers improves performance and increases availability of DNS servers. However, if the DNS server is also a domain controller and it points only to itself, or points to itself first for name resolution, this can cause a delay during startup. For this reason, use caution when configuring the loopback address on an adapter if the server is also a domain controller. The loopback address should be configured only as a secondary or tertiary DNS server on a domain controller.

For more information, see the following Knowledge Base articles:

    Troubleshooting DNS Event ID 4013: The DNS server was unable to load AD integrated DNS zones

    Domain controller boots up slowly when pointing to itself as the only DNS server

Resolution
    Configure adapter settings to add the loopback IP address to the list of DNS servers on all active interfaces, but not as the first server in the list.

Configure network adapters on this DNS server to use the loopback address (127.0.0.1, 0:0:0:0:0:0:0:1, or ::1) as one of the DNS servers, but not as the first DNS server on the list. If the loopback address is configured as the first DNS server, then configure another DNS server first.

Membership in Administrators, or equivalent, is the minimum required to complete these procedures. Review details about using the appropriate accounts and group memberships at Local and Domain Default Groups (http://go.microsoft.com/fwlink/?LinkId=83477).
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Steve McCarthy, MCSE, MCSA, MCP x8, Network+, i-Net+, A+, CIWA, CCNA, FDLE FCIC, HIPAA Security OfficerIT Consultant, Network Engineer, Windows Network Administrator, VMware AdministratorCommented:
I agree with Greg above.  Whenever there have been issues on DNS networks that I have worked on, one of the first things recommended is to get rid of the 127 address and use the actual IP address.
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Qlemo"Batchelor", Developer and EE Topic AdvisorCommented:
The MS article cited above is recommending not to use either address first. The first DNS server should be some other device. For the effect described, it doesn't matter if you have used a real or loopback IP.
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MASEE Solution Guide - Technical Dept HeadCommented:
Agree with Qlemo and thanks for correction. loopback is supposed to be the alternate DNS.
When we run best practice analyzer on domain controller and if loopback is not in NIC you get a warning for missing loopback.
Correct me if I am wrong.
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Steve McCarthy, MCSE, MCSA, MCP x8, Network+, i-Net+, A+, CIWA, CCNA, FDLE FCIC, HIPAA Security OfficerIT Consultant, Network Engineer, Windows Network Administrator, VMware AdministratorCommented:
Just an FYI, that document is 7 years old and it specifically talks about the LOOPBACK address. Nowhere does it say not to use the server's own IP address.  

You should apply the information in this topic only to computers that have had the DNS Microsoft Baseline Configuration Analyzer or DNS Best Practices Analyzer run against them and are experiencing the issue addressed by this topic.

I have worked with many Microsoft engineers in the past that say to remove the loopback address and use the actual IP address.  If you use an SBS server, for example, you must use your own address. Again the document is only discussing the loopback address and NOT the actual IP address.
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Qlemo"Batchelor", Developer and EE Topic AdvisorCommented:
Steve, did you understand the reaon why? Because the DNS service on the own machine might not be ready at the stage when the server tries to register services. For that, it doesn't matter if loopback or real IP at all.
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