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A domain is a part of the uniform resource locator [U.R.L] that locates an organization or entity on the internet, i.e.  www.watchfire.com.The internet is divided into smaller sets known as domains, one of the elements that comprise a DNS address. Domain names are important because the internet’s addressing scheme is not very effective without them. Your own domain name makes your company look professional and up to date with the times.

Domains are divided into different categories: .net, .org, .edu, .fr, .uk etc. A domain identifies one or more IP addresses .Domain names are used in URLs to identify particular web pages. A domain name is meaningful and easy to remember internet address. Because maintaining a central list of domain name, the list of domain and IP addresses are distributed throughout internet in a hierarchy of authority. Domain registration is the process by which a company or individual can secure a website domain such as www.yoursite.com.Domain registration is available to the public via a registrar. Fees and services vary from company to company, but the process is generally inexpensive. The most common types of domain names are host names that provide more memorable names to stand in for numerical IP addresses. The internationalized domain name system has been developed to bypass the restriction on character allowances in hostnames, making it easier for users of non-English alphabets to use the internet.
Every domain name ends in a top level domain name, which is always either one of a small list of generic names [three or more character] or a two character territory code based. Top level domain are also called first level domains.ICANNC [internet corporation for assigned names and numbers] has overall responsibility of managing the DNS.A few companies have affected low cost, below cost, or even free domain registration with a variety of models adopted to recover the cost to the provider .In addition to a domain placing value on the shortness of the word, ease to spell, commercial appeal and organic capacity to generate natural traffic. Today’s domain names are being valued for the branding potential. Brands are greatly affected by the ability of the company to obtain the matching domain name.