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Web hosting helps a registrant to establish a domain name, leases a block of server space and uploads their webpage. Very quickly, anybody with a connection to the internet can start browsing the site.
A good web hosting service like xmedia provides a number of high quality services and even proactively works to identify and correct issues before they occur.
No, it is not required to host with us. Typically we recommend that our clients host with us because we have standardized our servers to handle all of the services that may be needed for the project deployment.