This ridiculously easy analogy will help you understand how your WordPress website is structured.
Let’s imagine your website is a car.
The WordPress framework is the vehicle itself. But in order to power the car you need an engine. That’s where your hosting comes into play. You need the site to be hosted on a server so that it can be powered. Your number plate is your domain…it’s the unique identifier, and for a url that’s really special, you will probably need to pay more. Just like cherished plates.
Now you have a bland shell of a car with its unique reg number, but it’s not very cool and neither does it have much in the way of functionality.