I don't understand domain registration...?

What you effectively buy is the exclusive right to use that combination of letters, numbers and suffix (eg: .com) for X number of years as stored in some very big databases.

You've got to go with someone like GoDaddy or similar as they have systems which can talk to the people who run the massive databases of domain names and thus ensure you become listed as the domain "owner" (well actually renter). You could say they do the paperwork, although actually it's all electronic.

There is a stack more to this including DNS, root servers and other gubbins, but that's the basics.

when one types a web site address a specific page opens this page is stored in a server somewhere,so what you pay for to own a web site is called domain registration and this has to be renewed periodically.The owner is given a secret password wherein content of the site can be added changed or deleted. Any Good Addy will do this for you there are so many these days but first test the reputation and the speed of the server.

I will be the first to say that I am a novice at this, but I will give it my best shot. When you purchase it you are paying the server (i.e. godaddy, yahoo, etc.) to store your pages on their systems. So that when ever someone goes to www.whatever.com they will be able to pull up your information 24/7. If you are working with a large enough company you can actually do the web hosting yourself.

You are paying rental fees for 1 year for a domain registration, which vary according to TLD

you are renting it. you pay godaddy to pay the owners the amount per month