Short for Dynamic Host Configuration Protocol, a protocol for assigning dynamic IP addresses to devices on a network. With dynamic addressing, a device can have a different IP address every time it connects to the network. In some systems, the device's IP address can even change while it is still connected. DHCP also supports a mix of static and dynamic IP addresses.

Dynamic addressing simplifies network administration because the software keeps track of IP addresses rather than requiring an administrator to manage the task. This means that a new computer can be added to a network without the hassle of manually assigning it a unique IP address. Many ISPs use dynamic IP addressing for dial-up users.

What is DHCP Server?

Dynamic Host Configuration Protocol (DHCP) is a network protocol that enables a server to automatically assign an IP address to a computer from a defined range of numbers (i.e., a scope) configured for a given network.

DHCP assigns an IP address when a system is started, for example:

  1. A user turns on a computer with a DHCP client.

  2. The client computer sends a broadcast request (called a DISCOVER or DHCPDISCOVER), looking for a DHCP server to answer.

  3. The router directs the DISCOVER packet to the correct DHCP server.

  4. The server receives the DISCOVER packet. Based on availability and usage policies set on the server, the server determines an appropriate address (if any) to give to the client. The server then temporarily reserves that address for the client and sends back to the client an OFFER (or DHCPOFFER) packet, with that address information. The server also configures the client's DNS servers, WINS servers, NTP servers, and sometimes other services as well.

  5. The client sends a REQUEST (or DHCPREQUEST) packet, letting the server know that it intends to use the address.

  6. The server sends an ACK (or DHCPACK [Acknowledge]) packet, confirming that the client has a been given a lease on the address for a server-specified period of time.

When a computer uses a static IP address, it means that the computer is manually configured to use a specific IP address. One problem with static assignment, which can result from user error or inattention to detail, occurs when two computers are configured with the same IP address. This creates a conflict that results in loss of service. Using DHCP to dynamically assign IP addresses minimizes these conflicts.