Why should I register my nickname?
You can assign a password to your name so that only you can use your nickname. Enabling this mean anyone that connects to IRC with your username is given around 60 seconds to identify themselves to NickServ. If they do not, NickServ will change their name to a name like Guest76731. If the person changes their name back to your registered nickname and still does not identify themselves, they will get disconnected from the server.
This is to prevent people from impersonating others and avoid the confusion of having two or more people known as the same name.
Related Topics:
A Beginners Guide
Nick Registration Help