What is the need of local DNS?

I’m using my phone internet on my laptop through hotspot. Thus here NAT(Network Address Translation)is happening which hide my public ip and provide me local ip.
When I run command command on my linuxcat /etc/resolve.conf
then it show me my local dns I’m using. What I don’t understand is what point of using local dns here b/c local ip address is provided by my phone to laptop then it means my phone(router) already know my laptop address. Then why local dns is required.

One more question is it right to say that phone act as a router when we use its hotspot service?

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cat /etc/resolve.conf gives you dns server your laptop will use for resolving domain names. It doesn’t matter what DNS is specified in your router. You can very well use IP of your router as dns server, in that case your “router” acts as dns forward proxy.

One more question is it right to say that phone act as a router when we use its hotspot service?

Yes it is correct to say that. It does run DHCP service, perform NAT and in some cases provide QoS. All of which are typical of router.

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