
Explanation/Reference:
Host-named site collections are the preferred method to deploy sites in SharePoint 2013. Because the Office 365 environment uses host-named site collections, new features are optimized for these site collections and they are expected to be more reliable.
Host-named site collections enable you to assign a unique DNS name to site collections. For example, you can address them as http://TeamA.contoso.com and http://TeamB.contoso.com. This enables you to deploy many sites with unique DNS names in the same web application.
You can use Windows PowerShell to create host-named site collections. You cannot use Central Administration to create host-named site collections.
Path-named site collection - use path-named collections when you need to use alternate access mappings (AAMs).
Use Alternate Access Mappings to manage URLs for path-based site collection.
