Same sql instance in two different server

Is it possible to have two sql instance in two different server vm

1. Server VM for Production
Host name: production
Sql instance: production/abc
IP: 10.0.0.2

2. Server VM for UAT
Host name: uat
Sql instance: uat/abc
IP: 10.0.0.6

Will there be any conflict ?
I think this setting is unique, should not effect coding or CRUD
Please advise