What is instanceid in spring eureka?

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I read that instance id of Eureka Clients have to be unique and when we wish to run multiple instances of the same Eureka Client, then we add this property:

eureka.instance.instance-id==${spring.cloud.client.hostname}:${spring.application.name}:${spring.application.instance_id:${random.value}}

What is the significance of instance Id and how does the above line matter?

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