The ccTLDs are country-specific domain extension for example the .hu, .de or.cn. The ccTLDs always consist of a two-letter code, and in addition to land areas, overseas territories such as islands also have their ccTLD domains. There are two exceptions to the list. The first is that the UK uses .uk, even though .gb is registered, and the other is .eu, which is not used by a single state but by the European Union. Nowadays, the most popular ccTLD is the .de with 15 million registrations, (https://research.domaintools.com/statistics/tld-counts/), the second is the .uk, the third is the .cn.
The Registry of the .hu domain name is the Magyarországi Internet Szolgáltatók Tanácsa Tudományos Egyesület (ISzT). You can read about the .hu domain, the regulations on the domain.hu page.
The procedures for ccTLDs may vary from country to country, more countries need to prove that we are its inhabitants.
The most evident reason is that a particular business wants to target users in their own country, in which case they usually choose a country code domain. The country-code domain shows what country your business primarily serves, and users generally find that site more reliable.
A well-chosen ccTLD website can also help with search engine optimization. For a business’s multilingual website, the ccTLD helps Google determine the right geographic location for the website.
You may also benefit from using a country-code domain for local searches. Many people explore for a special service near them on their cell phones while travelling. For example, if a user searches for a Hungarian hairdresser nearby, search engines will prefer websites with a .hu domain because they also detect the geographical location of the website.
