Term Description
DHCP DHCP (Dynamic Host Configuration Protocol) is a protocol for automatic assignment of IP addresses in an organization's network.

Using the Internet Protocol, each device that can connect to the Internet needs a unique IP address assigned to it. The DHCP server assigns a dynamic IP address to each client, using the concept of a "lease" (amount of time) that the IP will be valid for a particular network node. Assigning short lease times to clients allows for a dynamic network with more nodes than available IP addresses.

With DHCP there is no need to statically assign IPs to each node locally, and there is no need to reconfigure clients if they are moved to a different place in the network. The only disadvantage of using DHCP is the fact clients have no permanent IP addresses; when the DHCP lease expires IPs can be reassigned to a different client.

See also: What is the difference between dynamic and static IP addresses ?
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