CNAME records serve as pointers or aliases, redirecting one domain name to another. They are crucial for simplifying web hosting setups, particularly when managing multiple subdomains or frequent redirect changes.

The significance of a CNAME record lies in its ability to offer flexibility and ease in managing domain redirection and service allocation. It allows swift changes to a domain's endpoint without disrupting associated network services or altering other records. 

Common use cases include:

• Pointing a hostname for network services such as email, FTP, or CDNs (content delivery networks) to the root domain name (the “true name”)
  
  
• Pointing subdomains built for different customers on a service provider’s domain (company.hostname.com) to the root domain (company.com)
  
  
• Redirecting traffic to an optimal CDN based on user location, DNS server or CDN availability, or other factors
  
  
• Registering a domain name in multiple countries and pointing websites that are built for different geos/countries to the main domain
  
  
• Pointing websites that are owned by the same company to a primary domain
  

The following resolution process example demonstrates how CNAME records work:

1.    A DNS client requests an address (initiates a DNS query), and a DNS request is created. For this example, we will use www.example.com as the requested address.

2.    A DNS resolver receives the request and locates the authoritative name server that holds the DNS zone file with DNS records for the “example.com” domain.

3.    The DNS request is resolved and the CNAME record is returned to the client.

4.    The client recognizes that www.example.com is an alias for the address “example.com.” The client starts a new query for “example.com.”

5.    A DNS request for “example.com” is created and the resolver locates and returns the A record for “example.com.” The A record contains the IP address.

6.    With this IP address, the DNS client connects to “example.com.”

Certain restrictions apply to CNAME records and how they can be used, including:

• A CNAME cannot be placed at the root domain level. The root domain is the DNS start of authority (SOA), which must point to an IP address.
  
  
• A CNAME record points to another domain name. CNAME records never point to an IP address.
  
  
• A hostname defined in a CNAME record cannot have any other resource records of other types, like mail exchange (MX) records, TXT records, or A records. There are exceptions for DNSSEC records, like RRSIG and NSEC.
  
  
• A CNAME record can point to another CNAME record, but this is inefficient and not considered good practice.
  
  
• MX records and name server records (NS records) must never point to a CNAME alias.

Alias records serve a purpose similar to CNAME records by redirecting one domain name to another. Understanding the nuances between CNAME records, alias records, and redirects, and their relationships within the DNS landscape, is fundamental for efficient domain management.

CNAME records act as aliases, directing one domain name to another. They are primarily used for subdomains and cannot coexist with other records on the same hostname. 

Alias records, similar in function to CNAME records, offer a workaround by permitting the simultaneous use of other record types. Redirects, however, function differently by guiding users and search engines to different URLs and are typically implemented at the web server level. 

An A record (address record) directly maps a domain name to an IPv4 address. AAAA records map a domain name to an IPv6 address. Unlike CNAME records, A records don't provide an alias but rather a direct translation of a domain name to an IP address.

In the broader context of DNS, CNAME records, alongside other records like MX, A, TXT, and NS, play specific roles in directing domain names, routing traffic, specifying mail servers, mapping to IP addresses, storing textual data, and indicating authoritative name servers.