DHCP is an acronym for Dynamic Host Configuration Protocol. once a range of IP addresses has been defined on a DHCP server, it will automatically assign them to computers connected to the network. this is done once the system is started and recognized on a server. First a broadcast request is sent by the client to the DHCP server. this message sent is known as DHCP DISCOVER. the router will then send a packet to the DHCP. once a pocket is received,an IP address is   sent to the client based on certain rules that are set on the server. this IP address is then reserved and an OFFER request is sent to the client. later the client sends a REQUEST packet to acknowledge the IP address. lastly a confirmation packet known as DHCPACK  is sent by the server to finalize the IP address for the client.

This IP adress may expire after a certain period of time as set by the DHCP server.

This method of IP configuration is used to make configuration easier by avoiding IP address conflicts