The Dynamic Host Configuration Protocol or just DHCP provides networked devices with all the necessary parameters, IP addresses, network masks, the gateway or DNS servers IP addresses, so that they can actively participate in the network and start exchanging data with other devices or workstations. This automated operation, which greatly relieves the system administrator from the pain of manually assigning those parameters to every device that is connected to the network, is carried out by the DHCP daemon.
Here is a very good article (note: page is down) about how to setup the DHCP server in Linux.
Howto: DHCP Server (dhcpd) Configuration by George Notaras is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
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