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Databases often contain lots of information, but typically not the piece of information you want. You may have a database with names and addresses, and another with demographic data based on suburbs. The problem is how to connect the two databases together. This is where universal domains help, by informing GDS that the names and address database really does have an address, the system is able to match other databases that also have the universal domain address defined. This matching is able to understand differences in addresses and still match records.
Essentially, with universal domains you are tagging what type of information is held in a database, which GDS can use to locate additional data on the row.