BuddyPress.org

@adiljaved – yes, each individual having their own blog is a standard BuddyPress setup.

You’ll need to install WordPress 3.0 and configure it for multisite: https://codex.wordpress.org/Create_A_Network

Then install the BuddyPress plugin (from the plugins menu), and it’s as simple as that. You’ll have a default installation, default theme, and the ability for each individual to have their own blog.

Ask the hosting question separately – there are lots of possibilities (we use hostnine – a US company with servers in a few countries). Type of server you need will depend on the amount of traffic you get to your site.