Imagine a telephone directory. You look up your name to find your phone number. You call the phone number and you find ... you! The Domain Name System works in a similar way. When someone types in a domain name, computers (DNS Servers) translate that name into an internet address number (the IP address). Your browser then uses that internet address to find the correct website for that domain name. A lot more happens behind the scenes but you get the general idea.
Domain names (yourdomain.domaintype) are broken up into two sections. The second-level domain name (SLD) which is the 'yourdomain' part to the left of the dot, and the top-level domain name (TLD) which is the 'domaintype' part to the right of the dot. While the SLD can be pretty much anything you choose, the TLD must belong to a certain set of values which describes the type of entity or organisation the domain belongs to, and sometimes also describes the country the entity does buisness in (.com, .org, .name, .jp (japan), .co.nz (new zealand)).
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