Each domain name refers to a different and unique IP address. It is much easier to remember the name which are also much easier than to memorize as well. Catchy domain names also play their part in attracting a healthy flow of traffic. Let it be any cheap hosting, it all is the same when you're talking about the IPs. IPs or internet protocols are the real address of a website. No two IPs are alike. This works the same for websites like the numbers on cars, like for example say Ferrari or McLaren F1 etc.
The most common domain names, offered by cheap website hosting, end with a .com which is more of a commercial sort whereas some other famous domain names are .net and .org. Organizations are the biggest user of .org domain names as it per se is a short form of organization. The more technical sites use .net which is a short form of .net. There are also country specified domain names offered by many business hosting services, for example bbc.co.uk, yahoo.co.jp etc.
There are also some less used to domain prefixes which are not very popular amongst the users but every now and then you do come across a website with .tk or .mp3. The best web hosting services offer almost any kind of domain.
There are no two domain names which are alike. Domain names often tell a lot about the sites and even their location. For example, japanexports.com would definitely be a website representing some business based in Japan which deals in exports. The best domain names are dealt by TLDs, which are also known as Top Level Domains. TLDs do a fantastic job at keeping the location of the website country free so you cannot really always tell where a certain websites is operated from. It is one of the best things you can opt with your business web hosting so that nobody can really tell where the business is located if you really wish to keep that a secret.