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A shared web hosting service or virtual hosting service or derive host refers to a web hosting service where many websites reside on one web server connected to the Internet. Each site "sits" on its own partition, or section/place on the server to keep it separate from other sites. This is generally the most economical option for hosting, as many people share the overall cost of server maintenance.
Shared web hosting can be accomplished in two ways: name-based and IP-based, although some control panels allow a mix of name-based and IP-based on the one server.

Name-based

In name-based virtual hosting, also called shared IP hosting, the virtual hosts serve multiple hostnames on a single machine with a single IP address.

When a web browser requests a resource from a web server using HTTP/1.1 it includes the requested hostname as part of the request. The server uses this information to determine which web site to show the user.

IP-based

In IP-based virtual hosting, also called dedicated IP hosting, each virtual host has a different IP address. The web server is configured with multiple physical network interfaces, or virtual network interfaces on the same physical interface. The web server software uses the IP address the client connects to in order to determine which web site to show the user. The primary reason for a site to use a dedicated IP is to be able to use its own SSL certificate rather than a shared certificate.

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