A website is defined as a collection of web pages hosted on a server, accessible via a domain name, which serves as an address for users on the internet. A website can exist without functional web pages, but typically, it includes them. The domain name is linked to an IP address, which can be verified through commands like "ping." Internet Service Providers (ISPs) register domain names and provide internet connectivity, but individuals can also lease domain names independently. Hosting a website can be done at home by setting up a personal server, and web servers use systems like Common Gateway Interface (CGI) to manage user requests and deliver HTML content. It is noted that large companies, such as Facebook, utilize multiple IP addresses for their hosting needs, rather than a single address. The discussion highlights various misconceptions about domain registration and website hosting.