Dynamic Host Configuration Protocol (DHCP) is a network protocol used to automate the process of assigning IP addresses and related network configuration information to devices within a network. DHCP eliminates the need for manual IP address configuration, making it more efficient to manage large networks. When a device connects to a network, it sends a DHCP request, and a DHCP server responds by assigning it a unique IP address, subnet mask, default gateway, and other parameters. This dynamic allocation of addresses ensures optimal utilization of IP resources and simplifies network administration. DHCP helps in reducing errors, centralizing IP address management, and supporting the dynamic nature of modern networks, where devices frequently join and leave the network.