Web hosting is usually done on a computer that is permanently connected to the Internet. When you purchase a hosting account you are reserving an IP address and some web space where you can store your files. The IP address is a series of numbers such as 123.456.123.789, which is the exact address on the web where space has been made available for your use.
IP addresses are not so easy for most people to remember but using a special bit of computer coding we instead assign a word or series of words to the IP address so then, when we type that word into a browser, it automatically goes to your IP address. These words are known as domain names.