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Domain Names
What is a domain name, and why do I need one?
In simple terms
A domain name is a string of numbers or letters, ending in an extension such as .com or .co.uk, commonly referred to as a web address.
The domain name system was created so that we don't have to memorize unique IP addresses for websites - an IP address, by the way, is four strings of up to three numbers. For example, 127.0.0.1, or 192.168.1.1. You could apply an analogy to this - it's easier to remember a friend's name than their telephone number, so we store both sets of data in our mobile phones and search for the name rather than the number.
So, rather than typing (for example) 246.810.12.14 into our address bars, we type (for example) tastychocolates.com. Much better.
So, in the simplest possible terms, in the address http://www.hostingforaquid.co.uk/guides_and_faqs.html, the domain name bit is hostingforaquid.co.uk.
For deeper understanding
What you've just read is a very simplified version of the truth. If you'd like to pursue deeper understanding of this subject, have a look at this excellent Wikipedia article, which covers most aspects of DNS (Domain Name System).