Eureka Server is an application that holds the information about all client-service applications. Every Micro service will register into the Eureka server and Eureka server knows all the client applications running on each port and IP address. Eureka Server is also known as Discovery Server.
How does Eureka service discovery work?
With Netflix Eureka each client can simultaneously act as a server, to replicate its status to a connected peer. In other words, a client retrieves a list of all connected peers of a service registry and makes all further requests to any other services through a load-balancing algorithm.
What is the use of Discovery server?
Service discovery is how applications and (micro)services locate each other on a network. Implementations include both a central server(s) that maintain a global view of addresses and clients that connect to the central server to update and retrieve addresses.