Load balancing solves issue of scaling by adding more servers, but still has issue of:

1. Even distribution of load & 2) Crash Handling if one/more goes down

Consistent Hashing uses a set of "K" hash functions, where each hash value determine point where server operates.
No of servers = S
Hash functions = K
Total functional points = S*K

Now when client requests, there is a hash function mod to a range [0, M] and it requests to the next closest point where there is a server operated point.

More hash functions, more points to operate for each server, so even distribution and better error handling