In web hosting, what is IP based hosting and when is it typically used by a hosting provider?

Introduction / Context:
When a hosting provider runs many websites on one server, it must decide how to map domains to server addresses. Two common strategies are IP based hosting and name based hosting. This question focuses on IP based hosting, where each website receives its own IP address. Understanding this approach is important when dealing with SSL certificates, legacy clients, and scenarios that require stronger isolation between sites.

Given Data / Assumptions:

• A single physical or virtual server can host multiple websites.
• The server has one or more IP addresses assigned to its network interfaces.
• Domain names are mapped to IP addresses using DNS records.
• The question asks what IP based hosting is and when it is typically used.

Concept / Approach:
In IP based hosting, each website or virtual host is bound to a unique IP address. When a client looks up a domain, DNS returns the specific IP address associated with that site. The web server listens on multiple IP addresses and uses the destination IP to route the request to the correct site. Historically, this model was important for SSL because older versions of TLS and some clients did not support Server Name Indication, meaning the server had to identify the correct certificate based on the IP address alone. IP based hosting can also provide simpler logging, firewall rules, or isolation for high value sites, but it consumes more IP addresses, which are a limited resource, especially for IPv4.

Step-by-Step Solution:
Step 1: Recognize that IP based hosting is contrasted with name based hosting, where many domains share one IP. Step 2: Recall that in IP based hosting, each site is configured with a dedicated IP address on the web server. Step 3: Note that this approach is often chosen for dedicated SSL, legacy client compatibility, or stricter isolation of traffic. Step 4: Select the option that clearly states each website receives a unique IP address and mentions typical use cases such as SSL or isolation.

Verification / Alternative check:
You can verify by checking the configuration of a web server such as Apache or Nginx. When using IP based virtual hosts, each VirtualHost block listens on a different IP address. DNS records map each domain to its own IP. Hosting control panels often describe dedicated IP addresses as a prerequisite for older style SSL certificates, which is a strong hint that IP based hosting is about one IP per site, not about sharing a single address.

Why Other Options Are Wrong:
Option B actually describes name based hosting, where multiple domains share one IP and the HTTP Host header distinguishes them. Option C is wrong because a site with IP based hosting can still be accessed via its domain name, not just the numeric IP. Option D is incorrect; website files are stored on servers, not in router firmware. Option E is false because IP based hosting has nothing to do with whether a plan is free or paid and often appears in higher end paid offerings.

Common Pitfalls:
A common pitfall is to assume that any website you reach by IP address must be using IP based hosting. In reality, many shared hosting setups also respond to direct IP access but still use name based virtual hosting behind the scenes. Another mistake is to think IP based hosting is always required for SSL; modern SNI support allows multiple certificates to share one IP. However, understanding the original role of IP based hosting helps when working with legacy systems and specialized hosting requirements.

Final Answer:
IP based hosting assigns a unique IP address to each hosted website, often used for dedicated SSL certificates or isolation requirements