Every domain name that is home to a website has an IP address assigned to it. An IP address is the real address of a website or server. Domain names were developed because it was too difficult to remember long IP numbers like 234.123.66.7. In shared hosting, a single IP address is shared amongst hundreds of different websites, i.e. hundreds of domains can resolve to the same IP address. Despite that, each of the domains shows it's own website, when called from the browser.

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