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3) If no loopback interfaces are configured, then the router chooses the highest active IPv4 address of any of its physical interfaces. This is the least recommended method because it makes it more difficult for administrators to distinguish between specific routers.
Miscellaneous Router ID Facts
Router ID characteristics
The router ID looks like an IP address, but it is not routable and, therefore, is not included in the routing table, unless the OSPF routing process chooses an interface (physical or loopback) that is appropriately defined by a network command.
In a multiaccess LAN environment, the election of the DR occurs during initial establishment of the OSPF network. When OSPF links become active, the routing device configured with the highest priority is elected the DR. Assuming there is no priority configured, or there is a tie, then the router with the highest router ID is elected the DR. The routing device with the second highest router ID is elected the BDR.
The router ID is used by other routers to uniquely identify each router within the OSPF domain and all packets that originate from them.
Example: 1.1.1.1, 2.2.2.2
Every router requires a router ID to participate in an OSPF domain. The router ID can be defined by an administrator or automatically assigned by the router.
Clearing OSPF Process
How to configure ID
OSPF Router ID Commands
1) The router ID is explicitly configured using the OSPF router-id rid router configuration mode command. The rid value is any 32-bit value expressed as an IPv4 address. This is the recommended method.
Verifying Router ID
Changing Router ID
2) If the router ID is not explicitly configured, the router chooses the highest IPv4 address of any of configured loopback interfaces.
Alternate loopback configuration