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Where Do DHCP Addresses Come From?

If you enter a wireless hotspot at an airport or coffee shop, DHCP makes it possible for you to access the Internet. As you enter the area, your laptop DHCP client contacts the local DHCP server via a wireless connection. The DHCP server assigns an IPv4 address to your laptop.
Various types of devices can be DHCP servers as long as they are running DHCP service software. With most medium to large networks, the DHCP server is usually a local, dedicated PC-based server.
With home networks, the DHCP server may be located at the ISP and a host on the home network receives its IPv4 configuration directly from the ISP, as shown in the figure.
Many home networks and small businesses use a wireless router and modem. In this case, the wireless router is both a DHCP client and a server. The wireless router acts as a client to receive its IPv4 configuration from the ISP and then acts as a DHCP server for internal hosts on the local network. The router receives the public IPv4 address from the ISP, and in its role as a DHCP server, it distributes private addresses to internal hosts.
In addition to PC-based servers and wireless routers, other types of networking devices such as dedicated routers can provide DHCP services to clients, although this is not as common.

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