To simplify: It is like the lease/title to your home; Web hosting, on the other hand, is the space of your house where you place your furniture; Your IP address is the address to which your Domain name points/Web host listens.
Instead of street name and area code, a set of words or/and numbers are used for the website's naming'. With hosting, computer hard disk and computer memory are used instead of wood and steel for storing and processing data files. The idea is presented clearer with the diagram below.
What's A Domain Name
When you register one at a registrar, it gives you sole ownership and rights to the name of your site. No one else in the market has access to the actual name of that particular domain besides you.
However, just because you have a domain does not mean that you are ready to serve your website to the world. To put up and operate a website, you will need a domain name and a proper-configured web server (hosting). -- be clear that (1) a domain name is like your house address, and (2) registrars are currently the only place you can purchase a domain;
What's Web Hosting
Web hosting normally refers to the webserver (extensive computer) that stores many data files for multiple users).
Hosting providers normally rent out web servers and network connections to the end-users or the resellers. For most cases, the hosting providers will be the parties handling most of the server maintenance work (such as backup, root configuration, maintenance, disaster recoveries, etc.). Still, for certain cases, the end-users will need to get configure, code, and develop the Web Site by themselves. Here at Hostwinds does provide free Website Transfers at this time!