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Website Hosting
Websites are basically an organized group of files that reside on the hard drive of special computers known as web servers.  These computers are said to host the website.

When you purchase a hosting account you are renting space on a web server.  This web server is a computer that is on the Internet and has an IP address.  After you have purchased and registered a domain name you have the ability to enter records for that domain associating names with IP addresses.