DNS stands for Domain Name System. It converts a domain name (e.g. www.mustermann.de) into an IP address. This is comparable to a telephone book in which each subscriber is resolved into a telephone number.
It thus offers a simplification because people can remember names much better than columns of numbers. To the example you can remember the domain name www.checkdomain.de better than the corresponding IP address 62.116.139.61.
Detailed information about the topic "nameserver" can be found here:
http://en.wikipedia.org/wiki/Domain_Name_System
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