As of March 2010, the Internet held 193 million domain names---the names that identify websites such as ehow.com---according to the domainsite.com website. Since 1973, when the federal government set up the first protocol for naming sites, the use of domain names has steadily grown. One million new names were registered between January and March 2010, and that was a slow period.
History
By the early 1970s, the U.S. Defense Information Systems Agency had decided it was necessary to create a system for identifying computer addresses on ARPANET, the government forerunner of the Internet. By 1973, according to Harvard University, ARPANET had developed a standard Internet Protocol for addresses. By 1993, there were 4,000 domain names, but as the web developed and e-commerce and promotion became more important, the numbers began to skyrocket.
Squatting
The explosion in domain names isn't entirely legitimate. Some names are held by cybersquatters, who register hundreds of domains based on business trademarks or famous names. The squatters may use the names to promote rival products, trick visitors into clicking on their ads or try to get a payoff from the real corporations, according to Computer World magazine.
Tasting
One study found that out of 35 million domain registrations in a single month, 33 million were dropped within a few days, according to artofdomaining.com. The study concluded that most of new domains were "tasting" tests by squatters who stopped the registration process for names that didn't draw enough visitors to make money.
Country codes
Much of the current growth in domain names comes from "country code" domains that identify the website as based in Germany (.de), China (.cn), America (.usa) or the United Arab Emirates (.ae). Names like these now outstrip the growth in .com names, according to zawya.com