What is a droplet? Tying to decide what to name it.

Setting up a new account. It’s asking me to name my droplet. What will I be creating once I name it?

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A droplet is a KVM based VPS (virtual server) running the OS you select on which you have full root access to install and configure whatever software you like. The name you give your droplet can be anything. If you want to have reverse DNS records set up for your new droplet you should give it a name that is a fully qualified domain or subdomain name.