Relation between Domain Names and IP address
A domain name is very similar to an address forwarding service. The domain name is the address people type in their web browser to get to your web site. The domain name then points to the "real" address that contains your web site. The "real" address is called the IP address and is a series of numbers, such as 126.96.36.199. This IP address then points to the location on the server that contains your web site files.
The reason we use domain names instead of IP addresses is because for most people a name, rather than a series of numbers, is much easier to remember. So, your domain name points to your IP address, which in turn points to your web site which allows users all across the Internet to view your web pages.