How DHCP works:

  1. When a client computer is started, it broadcasts a message requesting a DHCP server. This request includes the hardware address of the requesting client.

  2. Any DHCP server receiving the broadcast will send out its own broadcast message to the client offering an IP address for a set period of time, known as the lease period.

  3. The client selects one of the offers received. Normally, it looks for the longest lease period.

  4. The client broadcasts that it has selected an offered leased IP address and identifies the selected server.

  5. All non-selected servers return their offered IP addresses back to the pool of available addresses.

  6. The selected DHCP server gives an acknowledgement that includes the IP address, subnet mask, default gateway, DNS server and the lease period. The information broadcast is configurable. (Note from Zorin: a DHCP server's reply to a client is a unicast packet.)

The process is completed, and the client has access to the network. At this point, the user normally logs on.