DHCP stands for Dynamic Host Configuration Protocol which is a client/server protocol that routinely gives the IP host its unique IP address as well as other relevant configuration information like the default gateway and subnet mask. DHCP makes it possible for hosts to acquire essential TCP/IP information settings from the DHCP server.

One of the main benefits of using DHCP is a consistent IP address configuration. It reduces the errors in the configuration often caused by manually configuring IP addresses mainly on typographical errors. It also helps remove conflicts in the network address which usually happens when two computers get the same IP address assignment.