What is DHCP ?
  • DHCP is an abbreviation for Dynamic Host Configuration Protocol
  • DHCP is  a protocol that configure the IP address for  all devices on the network ( automatically )

Why do i need DHCP service ?
  1. if there is no DHCP service you may need to configure your IP manually to allow devices to connect to the network and communicate with each others
  2. it prevents IP conflict on the network (it does not give 2 PCs the same IP address )
  3. contains a central database with all PCs and there IP addresses and MAC address 

see also : How to set a static IP address from Windows