Dynamic Host Configuration Protocol (DHCP) is a network management protocol used to dynamically assign an IP address to any device on a network so it can communicate using IP. DHCP automates and centrally manages these configurations rather than requiring network administrators to manually assign IP addresses to all network devices. DHCP is a client-server protocol in which servers manage a pool of unique IP addresses, as well as information about client configuration parameters. The servers then assign addresses out of those address pools. DHCP allows hosts to obtain required TCP/IP configuration information from a DHCP server.
DHCP is important because it automates the process of configuring devices on IP networks, thus allowing them to communicate with each other. DHCP provides a range of benefits to network administrators, including reliable IP address configuration, simplified IP address management, and efficient handling of IP address changes for clients that must be updated. DHCP makes it simple for an organization to change its IP address scheme from one range of addresses to another without disrupting end users.
DHCP components include the DHCP server, DHCP client, and DHCP relay agent. DHCP servers automatically provide and assign IP addresses, default gateways, and other network parameters to client devices. DHCP-enabled clients send a request to the DHCP server whenever they connect to a network. DHCP works on the Application layer of the TCP/IP Protocol.