Am I right to think that if I became a shopify developer I have to host the actual app on my own platform?
I there a reason its hosted by shopify, or is it too draining on their resources?
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or is it too draining on their resources
Yes, if you build a road from point A to B your not going to also build all the different type of cars people could possibly want and your definately not going to want to pay for everyones fuel.
This is an accepted solution.
So do developers utilise an AWS instance to host the app, or something along those lines?
AWS, heroku, vercel, digitalocean, glitch,netlify,etc
Or locally hosted in the case of private apps for things like one offs, per store use, or tools like themekit or the shopify-cli