The Dynamic Host Configuration Protocol (DHCP) is a network management protocol used for automatically assigning IP addresses and communicating parameters to connected devices on IP networks. DHCP eliminates the need for manual configuration and consists of a centrally installed DHCP server and a client protocol stack for each device. DHCP can be implemented on networks of varying sizes and has benefits such as reliable IP address configuration and reducing network administration. DHCP servers run on IPv4 and IPv6.