Every business and many individuals need their own domain name. This unique alpha-numeric address becomes the name used to identify you in a web site URL or an email address. The great things about a domain name are that 1) you own it and 2) it is portable anywhere on the Internet. You keep the same identity, regardless of which Internet Service Provider (ISP) or hosting company you use. There is however, a lot of confusion about how to register and then use a domain name, as well as their actual function in the structure of the Internet.
Every computer on the Internet (even yours) has an address and, being machines, these addresses are numeric. They are referred to as IP Addresses (for Internet Protocol) and they are written in dotted-decimal notation; four numbers, each ranging from 0 to 255, separated by dots (e.g. 147.132.42.18). Even in the early days, when the Internet was used mainly by computer scientists and academics, they realized that referring to everything on the Internet using dotted-decimal notation was not going to fly. So a system was devised to use a domain name interchangeably with its IP Address. In other words, a domain name is an alias to an IP Address.
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