Registering a domain name lets you create a personal presence on the web. With your own web address, you can control your online identity by linking to any other site with more information about you. For example, you can register a domain name and forward it to a website, blog, or social profile page like your Facebook, LinkedIn, or Twitter pages. A domain name can protect your personal brand and help your career.
Next, someone has to tell the rest of the Internet that google.com points to 216.58.214.14. This is done by a “registry”, which is also the wholeseller that provides domains to registrars. Each top-level domain (TLD) — .com, .net., .org etc — has a registry that manages it. The .com TLD has been managed by the same registry since the beginning of time — an extremely profitable monopoly called Verisign. More on that later.

If you ever change your web host (the actual physical location of your website files), your domain name goes with you. Your regular visitors or customers who knew your site name as (say) www.thesitewizard.com would not have to be informed about a change of web address (also known as "URL"), since as far as they are concerned, the site is still at the same place. They would simply type your domain name and they'd be transparently brought to your new location.

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