Shared hosting is a type of web hosting service where multiple websites are stored on a single server. This means that the server's resources, such as memory and processing power, are shared among all the websites. It is a cost-effective solution for individuals and small businesses looking to establish an online presence without the need for extensive technical knowledge. Because resources are shared, performance can be affected if one website experiences high traffic or uses excessive resources. However, shared hosting is often sufficient for small websites, blogs, and startups that do not require dedicated server resources.