My Domain Registrar GoDaddy offers DNS hosting. My web hosting provider NFS offers DNS hosting.
Web hosting provider provides a bunch of IP address. This IP address is where my site physically is.
But, I still need to convert my domain name, say: www.example.com, to IP address that my hosting provider provided.
For that all I need is my domain to point to the web-hosting IP address.
I do not need to host DNS with my web hosting provider.
In the end, I am hosting DNS with GoDaddy, Web site with NearlyFreeSpeech and Domain registrar is GoDaddy; and thus I don't have to pay NFS.
Let's see this answer in other terms.
Hosting provider: NFS. IP address = x.y.z.a
Domain provider: GD. Points to = some GD specific IP = g.g.g.g
DNS host by NFS : NFS.NFS.NFS.com
DNS host by GD : GD.GD.GD.com
problem: Do I need to change my DNS along with point to value to run my site successfully?
Solution: no.
Hosting provider: NFS. IP address = x.y.z.a
Domain provider: GD. Points to = x.y.z.a
DNS host by GD : GD.GD.GD.com
I tried it and it worked. I have tried my best to explain. Thanks.