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DHCP(Dynamic Host Configuration Prototcol).

It dynamically assigns IP addresses to the hosts in the network.

DHCP follows 4 steps for assigning IP address to the hosts.

1) Discover: The host searches for the DHCP device in the network and requests for IP address.

2) Offer: DHCP offers list of IPs to host for selection.

3) Reply: The host reply(request) to DHCP with the IP address which it likes to use.

4) Acknowledge: The DHCP checks whether the requested IP is available or not. If it is available , it assigns the IP to the host else it requests the host to choose another IP.
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DHCP dynamically allocate ip address.

Discover: user with 0.0.0.0 ip will broadcast to the server.

Offer: DHCP offers list of ip from DHCP pool to the host machine.

Request: host machine will request to assign selected ip.

Acknowledgement: DHCP assigns the ip to the host machine ,if the ip is not in use.

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