What does the DOCKER_HOST variable do?

I'm new to Docker, using Boot2Docker on OSX. After booting it, this message is given:

To connect the Docker client to the Docker daemon, please set
export DOCKER_HOST=tcp://192.168.59.103:2375

Yet even without it, basic Docker commands (eg, docker run hello-world) work fine.

The install instructions aren't very informative:

Note: If you see a message in the terminal that looks something like this:
To connect the Docker client to the Docker daemon, please set: 
export  DOCKER_HOST=tcp://192.168.59.103:2375
you can safely set the evironment variable as instructed.

Knowing that it's "safe" doesn't say why it's useful.

What I'm not clear on:

1. What is the docker "client"?
2. What is the docker "daemon"?
3. What is the docker "host"? (The Boot2Docker VM itself?)

Ok, I think I got it.

The client is the docker command installed into OS X.

The host is the Boot2Docker VM.

The daemon is a background service running inside Boot2Docker.

This variable tells the client how to connect to the daemon.

When starting Boot2Docker, the terminal window that pops up already has DOCKER_HOST set, so that's why docker commands work. However, to run Docker commands in other terminal windows, you need to set this variable in those windows.

Failing to set it gives a message like this:

$ docker run hello-world
2014/08/11 11:41:42 Post http:///var/run/docker.sock/v1.13/containers/create: 
dial unix /var/run/docker.sock: no such file or directory

One way to fix that would be to simply do this:

$ export DOCKER_HOST=tcp://192.168.59.103:2375

But, as pointed out by others, it's better to do this:

$ $(boot2docker shellinit)
$ docker run hello-world
Hello from Docker. [...]

To spell out this possibly non-intuitive Bash command, running boot2docker shellinit returns a set of Bash commands that set environment variables:

export DOCKER_HOST=tcp://192.168.59.103:2376
export DOCKER_CERT_PATH=/Users/ddavison/.boot2docker/certs/boot2docker-vm
export DOCKER_TLS_VERIFY=1

Hence running $(boot2docker shellinit) generates those commands, and then runs them.

Upon investigation, it's also worth noting that when you want to start using docker in a new terminal window, the correct command is:

$(boot2docker shellinit)

I had tested these commands:

>>  docker info
Get http:///var/run/docker.sock/v1.15/info: dial unix /var/run/docker.sock: no such file or directory
>>  boot2docker shellinit
Writing /Users/ddavison/.boot2docker/certs/boot2docker-vm/ca.pem
Writing /Users/ddavison/.boot2docker/certs/boot2docker-vm/cert.pem
Writing /Users/ddavison/.boot2docker/certs/boot2docker-vm/key.pem
    export DOCKER_HOST=tcp://192.168.59.103:2376
    export DOCKER_CERT_PATH=/Users/ddavison/.boot2docker/certs/boot2docker-vm
    export DOCKER_TLS_VERIFY=1
>> docker info
Get http:///var/run/docker.sock/v1.15/info: dial unix /var/run/docker.sock: no such file or directory

Notice that docker info returned that same error. however.. when using $(boot2docker shellinit)...

>>  $(boot2docker init)
Writing /Users/ddavison/.boot2docker/certs/boot2docker-vm/ca.pem
Writing /Users/ddavison/.boot2docker/certs/boot2docker-vm/cert.pem
Writing /Users/ddavison/.boot2docker/certs/boot2docker-vm/key.pem
>>  docker info
Containers: 3
...

It points to the docker host! I followed these steps:

$ boot2docker start

Waiting for VM and Docker daemon to start...
..............................
Started.

To connect the Docker client to the Docker daemon, please set:
    export DOCKER_HOST=tcp://192.168.59.103:2375

$ export DOCKER_HOST=tcp://192.168.59.103:2375

$ docker run ubuntu:14.04 /bin/echo 'Hello world'
Unable to find image 'ubuntu:14.04' locally
Pulling repository ubuntu
9cbaf023786c: Download complete 
511136ea3c5a: Download complete 
97fd97495e49: Download complete 
2dcbbf65536c: Download complete 
6a459d727ebb: Download complete 
8f321fc43180: Download complete 
03db2b23cf03: Download complete 
Hello world

See:
http://docs.docker.com/userguide/dockerizing/