It's fine to give each character a name—internally, at least. Make a note of them in your notes, but don't tell the reader every single one of them. If it's relevant, reveal the identities, but not if it feels uncomfortable or forced. You can also call back characters later in the story.
Names are important because they provide information about the character. You can infer many things from a name: their age, what gender they are, where they're from, what they do for a living, etc. Knowing more about a character allows you to connect with them on an emotional level and understand why they do what they do.
For example, Sherlock Holmes is a famous detective who lives in London. Without knowing any of those details, someone reading A Study In Scarlet would assume that this character was very smart and probably worked for a police department. As it turns out, he's a drug addict who sleeps in gas lamps and eats only caffeine and sugar. He's certainly not what everyone thinks he is!
Now, if you want to keep some characters' identities a secret until later in the story, that's fine too. The readers won't mind because it makes them curious about them. They want to find out what happens to these people.
In conclusion, names are important because they help us connect with characters and understand their motivations.
A character's name should stand out. When you read it, you immediately recognize who they are, or when you see their name, it piques your interest and makes you want to learn more about them. A good name is also important because it can help guide the story in certain directions or explain things that would otherwise be mysterious. For example, if a character had no name, we would never know how he or she related to other characters in the book.
The names of characters play an important role in the storytelling process. They can give clues as to what will happen later in the story. For example, in Harry Potter and the Sorcerer's Stone, the character's names tell you something about what kind of person they are by showing what kind of magic they practice. Harry Potter is the main character and he is named after his father, who was a famous wizard who died when Harry was just a baby. So Harry gets to live out his dream of becoming a wizard just like his dad did before him. Now, this isn't always the case - some characters have strange names that don't seem to fit them at all! But in general, names can help shape the story by giving it direction or explaining mysteries that come up during the narrative.
Names also provide information about the characters' history.
So, no, names are not required. However, you must decide for yourself whether naming your own characters is preferable for your novel. Some authors like to give their characters names that describe what they do in the story or something about their personality. Others prefer to use numbers or symbols instead. It's up to you.
It's no secret that authors struggle with naming their characters. It's for good reason: a character's name can make or break how spectators remember them. It has the potential to become a true icon. Many authors won't even start writing until they've given each character in their work a name. This is because names carry so much weight that starting off on the wrong foot could be disastrous for your story.
There are two main reasons why authors name their characters. The first is so they're easier to identify. If you have a cast of thousands, it can be difficult to remember who does what role without reading the entire script. Naming your characters makes it easier for others to follow along and understand the action.
The second reason is that names help create characterization. Each character has a name that other people know and love or hate. This helps readers connect with the character and feel like they're inside the head of the protagonist. Names also provide information about a person that non-verbal behavior cannot always convey. For example, Sherlock Holmes is known for being a drug addict and Einstein for his genius, but these facts are revealed through written words. A reader knows this because 221B Baker Street is printed in red ink to indicate that Holmes is an addict who lives there.
Names also offer a way for writers to show respect to real people.
To begin, try to make your protagonists' names basic or, at the very least, easy to read. Their names will most likely appear frequently in your essay. If your reader has trouble remembering your character's name, they're likely to abandon your work, regardless of how fantastic the rest of it is. So give them a name that isn't too difficult nor too simple.
After you've chosen a name, take some time to think about what your character might be like. Are they a hero? A villain? An ordinary person who just happens get involved in extraordinary events? Once you have an idea of who your character is, you can start thinking about their name. Would this person's name fit with their personality? For example, if you were to create a character named "Lance", they would probably be a brave man or woman. A name like "Milo" could mean that your character is cheerful most of the time but occasionally gets annoyed by things. There are many ways to go about naming characters, so don't worry about coming up with something immediately. Just have fun with it and remember: simplicity is best.
A character who appears in only one scene does not require a name. Consider how you may add individuality to them just by labeling them. For example, let's say that there is a young man playing guitar in one scene and a young woman singing in another. You could call them John and Mary from now on without confusing them with any other characters.
Characters who appear in several scenes but are not major players should be named after the actors who play them. You could name them Adam and Eve to distinguish them from any other characters out there.
If a character has a long running story or series of events that happen over many scenes then they should have a name attached to them when they are created. You could call them James Dean and Maria Elena Cruz when they first meet which would help you remember their history later if you need to refer back to it.
Names can also be useful when trying to identify certain objects that appear in your scene.