(
Dynamic 
Host 
Configuration 
Protocol)  The automatic assigning of IP addresses to client machines logging into an IP network.  The same address, although technically temporary, may remain with a machine indefinitely unless a conflict arises with other devices on the network.
The DHCP software, which resides in the router or a server, eliminates the need to manually assign permanent "static" IP addresses to devices.  In a home network, the DHCP function is built into the wireless router.  See 
DHCPv6, 
IP network, 
private IP address, 
static IP address, 
IP address, 
DDNS, 
APIPA and 
link-local address.