DHCP stands for Dynamic Host Configuration Protocol.
DHCP is used to assign IP addresses automatically to the devices over the network. When a new device is added to the network, it broadcasts a message stating that it is new to the network. Then the message is transmitted to all the devices of the network.
Only the DHCP server will react to the message and assigns a new IP address to the newly added device of the network. With the help of DHCP, IP management became very easy.