DHCP stands for Dynamic Host Configuration Protocol. It is a network protocol used to automatically assign IP addresses and other network configuration parameters to devices on a network. DHCP allows devices, such as computers, smartphones, and other network-enabled devices, to obtain necessary network settings without manual configuration.
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Typically your router is a DHCP server when we are at home.
Website link (proof): https://bluecatnetworks.com/glossary/what-is-dhcp/
In a large enterprise setting, a DHCP server is usually a dedicated computer. By simplifying IP address management, it saves money, is more secure, and doesn’t eat up valuable admin time.