Origins of the Protocol

• DHCP was first designed in 1993 as an extension of the bootstrap protocol. The initial intention for DHCP was to be used to reclaim unused IP addresses. DHCP gained popularity, was released in 1997 and remains the standard for IP-based networks.
  
  

Purpose of DHCP Server

• The primary benefit of a DHCP server is to allow a centralized location to manage the IP configurations of each client. The DHCP server manages all IP addresses defined in a scope; it leases the address, then reclaims the address when it's no longer in use. Without a DHCP server, administrators would have to manually configure the IP settings for all devices within a network.
  
  

How It Works

• When an IP-enabled device is configured to use DHCP, the device sends a broadcast across the network requesting configuration settings from any available DHCP server. The DHCP server acknowledges the request and sends the client the IP configuration settings as defined in the server scope. The server will manage the assigned addresses, including releasing unused addresses for later distribution.