# Dynamic Host Control Protocol (DHCP) Address allocation can happen trough 2 ways. Fixed allocation: - Wasteful because if a hosts is not active the IP Address is still allocated. Dynamic allocation: - A DHCP server manages the allocation of IP Addresses and leases them for a certain amount of time. Dynamic allocation works like this: 1. A host broadcasts a request for an IP Address. 2. A DHCP server replies with a offer for an IP Address. 3. The host replies accepting the offer. 4. Server confirms the allocation of the IP Address.