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Dynamic Host Configuration Protocol (DHCP) is a network management Protocol used to dynamically assign an Internet Protocol (IP) address to any device, or node, on a network so it can communicate using IP. DHCP automates and centrally manages these configurations rather than requiring network administrators to manually assign an Internet Protocol Address (IP Address) to all network devices. DHCP can be implemented on small local networks Local Area Network (LAN), as well as Wide Area Network (WAN) large enterprise networks.

Source: https://searchnetworking.techtarget.com/definition/DHCP