DNS means Domain Name Server, it's a master server comprising big databases linking a domain name to a particular IP address.
If you type a URL in your favorite browser, the request is sent to the DNS to find the IP address for the domain name, then the IP address communicates with the DNS at the domain's IP address. IP address is a numerical address that is translated to a domain name. For example, you were in the mood to browse a site, you thought you want to visit Yahoo homepage, then you type "http://yahoo.com" in the URL browser instead of typing the Yahoo's IP address "69.147.114.210" in the URL browser.
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