Dynamic IP Addresses

Dynamic IP addresses are assigned by an ISP for non permanent nodes connecting to the Internet, such as a home computer which is on a dial-up connection. dynamic IP addresses can be assigned automatically using the Dynamic Host Configuration Protocol ( DHCP ), or the Point-to-Point Protocol ( PPP ), depending on the type of Internet connection. A node using DHCP first requests an IP address assignment from the network, and automatically configures its network interface. IP addresses can be assigned randomly from a pool by your ISP, or might be assigned according to a policy. IP ad- dresses assigned by DHCP are valid for a specified time (called the lease time ).

The node must renew the DHCP lease before the lease time expires. Upon renewal, the node may receive the same IP address or a different one from the pool of available addresses. Dynamic addresses are popular with Internet service providers, because it enables them to use fewer IP addresses than their total number of customers.

They only need an address for each customer who is active at any one time. Globally routable IP addresses cost money, and some authorities that specialize in the assignment of addresses (such as RIPE, the European RIR) are very strict on IP address usage for ISP's. Assigning addresses dynami- cally allows ISPs to save money, and they will often charge extra to provide a static IP address to their customers.