BungeeCord is used to link multiple servers together. It is not a standalone server and requires a minimum of 3 servers to work.

For example:
One Server (Bungeecord)
One Server (Lobby)
One Server (Factions)

Here's a diagram of how it works:


This article explains more about it: https://www.spigotmc.org/wiki/about-bungeecord/
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