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When you register any domain, it has to be registered with the top-level registrars (e.g. Nominet for .uk, EURid for .eu etc) so that everyone in the world knows about it. These registrars don't provide a free service, hence why you have to pay.
If you purchase a dedicated server agreement with a provider they may offer you a free domain to use with it, however if you're talking about a server you've got at home, then no.
Of course you can create your own domains using a local DNS server installed on your own machine, but no-one else in the world will know about it until it's registered with the relevant top-level registry, which you do through a domain registrar, who charge you.
Domains aren't massively expensive.
Once you've registered a domain, you can set up the addresses to point to the server you want and people across the Internet will find it.
but if i have to pay for why don't others have to? i dont get that it starts somewhere and there is where i want to begin
(but it wont have to be knwon by everyone only with friends and so on not with the eu or uk)
Unless your friends are on the same network (or can use your machine as their DNS server) it will need to be registered publicly.) The DNS system is not selective about who it lets see the domains - that's a job for you to secure your server once the domain's set up.
Yes, even the domain registrars who you pay to register a domain, have to pay an amount to the registries to be able to register them. It's not a free system.
You can get a free domain from places such as no-ip.com, dyndns.org or www.dot.tk. Buying a domain isn't all that expensive, a .co.uk domain is about £2.50 a year.
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