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The entityID is an identifier for your IdP. Although it is almost always a URL, an entityID is a name (not a location). One of your first (and perhaps most important) tasks is to choose a permanent entityID in a namespace you control. Thus the host part of the chosen URL must be rooted in a DNS name you own control (as indicated in the whois database or via a Domain Control Validation process administered by the Registration Authority (InCommon)). This is almost always the primary domain of your organization.
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