Answer 1

All goDaddy does is set up a domain name for your site.* If you want to host your own website on a home server, you can do it for free and just give everyone that needs access to the site the raw IP address. Not really the most effective way to spread the word about your awesome site, but totally possible.

*GoDaddy does other things too, but in the context of the question that is all that really matters.