As the Internet exploded and millions of Hosts were added it became an overwhelming task to track which IP addresses were already in use or which ones were freed
up when a computer was removed from the network.
DHCP was created to automate this process. A DHCP server is given a block of addresses that it controls. Hosts that are configured to use DHCP will contact the DHCP server when they are turned on to request an IP address.
To know more about DHCP and the working of DHCP click on the link below.
How to configure DHCP and working of DHCP
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