According to Nexus book, hosted repository is \"a repository that is hosted by Nexus.\" and the 3rd party repository (a hosted repository) should be used for third-party depende
it's not easy to understand them only by term, take company A for example, company A has a own artifact companyA.jar, it depends on mybatis.jar, when building companyA project, it will download mybatis.jar from proxy repository, if there is not, then nexus will download it from public maven repository and store it in proxy repository such that it not necessary for nexus download mybatis from public maven repository again.
For companyA project, other developers needs it too in this company, so its developer needs to deploy it to hosted repository such that other people can use it.