NginX Cross-Loadbalance

Let's say you have 2 web servers. Both has NginX installed. You want to load balance the traffic between them. How do you do that in nginx.conf?

Server1:

http {
  upstream myproject {
    ip_hash;
    server 127.0.0.1:8000;
    server 10.0.0.2:8000;
  }

  server {
    listen 80;
    server_name www.domain.com;
    location / {
      proxy_pass http://myproject;
    }
  }
}

Server2:

http {
  upstream myproject {
    ip_hash;
    server 127.0.0.1:8000;
    server 10.0.0.1:8000;
  }

  server {
    listen 80;
    server_name www.domain.com;
    location / {
      proxy_pass http://myproject;
    }
  }
}

Should this work or is it a complete failure?