19.2 Host Names and addresses
# IP-address hostname alias
127.0.0.1 localhost loghost
220.127.116.11 nyssa nyssa.acs.ohio-state.edu loghost
18.104.22.168 tardis tardis.acs.ohio-state.edu
Generally you will keep the local host name here, it's server, or for a server, it's diskless clients, and maybe a few other frequently used machines.
Diskless machines require that the server know their ethernet address, kept in the /etc/ethers, e.g:
# ethernet-address hostname