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Permissions for default user

Why is the host string not required for the default user SCOTT?

I installed Oracle 9i on my desktop. The default user is 'scott' with password 'tiger.' I want to create some schemas/users with different permissions. Why is the host string not required for user SCOTT?
The host string is not required for SCOTT because SQL*Plus knows the database is local to your system. If the database is on another system, you will need a host string or TNS alias in order to be able to connect to that database.

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