The following Network Diagram shows how packets and information are accessed from the routers to the access point and the mobile phones, laptops, and smart television sets. The below Network Diagram shows the importance of DHCP. Dynamic Host Configuration Protocol (DHCP) is a potent and popular mechanism by which IP addresses and other related network information are dynamically assigned to network clients when they are attached to a network. A DHCP scope defines one or more ranges of IP addresses from which an IP address may be assigned to a client and the duration of the IP address lease. This provides significant reductions in network management overheads, particularly on large networks, by avoiding the necessity to assign settings to each client manually.