Round-robin is the default method nginx uses to distribute client requests among backend servers. When a request arrives, nginx forwards it to the next server in the list, cycling through all servers evenly. This means the first request goes to the first server, the second to the second server, and so on. After the last server is used, nginx starts again from the first server. This cycle repeats indefinitely. The configuration defines the backend servers inside an upstream block. The proxy_pass directive sends requests to this upstream group. Round-robin does not consider server load or response time; it simply distributes requests evenly in order.