When to use adb connect with localhost?

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I have one emulator set up locally

$ adb devices
List of devices attached
emulator-5554   device

When I do adb connect localhost:5555 I will have 2 devices set up

$ adb devices
List of devices attached
emulator-5554   device
localhost:5555  device
  1. How is that possible? This is still the same device, right? Available only under two different names.
  2. In what situations running adb connect localhost:5555 make sense? I've seen plenty of posts on SO doing that, but what they have emulator available locally?
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