DHCP (Dynamic Host Configuration Protocol) automatically assigns IP addresses, subnet masks, default gateways and other network configuration parameters to devices on a TCP/IP network. A DHCP server centrally manages the IP address pool and configuration settings. When a new device joins the network, it broadcasts a DHCP request and the DHCP server responds with an offered IP address and other settings. The device then acknowledges the offer to complete the DHCP process. DHCP simplifies network administration by automating device addressing and configuration.