DHCP in computer networking stands for Dynamic Host Configuration Protocol and is the protocol responsible for assigning IP addresses and configuration to devices connected over a network. Basic requirement over a network for device to connect and operate is that it has an IP address and network configuration. These IP addresses are needed to be assigned either manually by the administrator or the APIPA Address is assigned by computer to itself. APIPA address limits the computer to its local subnet and it can’t work outside of that subnet. DHCP allows the computer to request for it’s IP address and configuration from the ISP so the manual work if the administrator is not needed.

DHCP is applicable to different types of networks ranging from a local network at residence or even a bigger campus as well as an ISP network. The DHCP server can be a router in a network or it can be a residential gateway. The routers usually have their own IP address by default provided by the ISP network and this DHCP server then gives a local IP address to computers connected over the network.