It is briefly stated as a protocol to help administrators locate, configure and manage IP addresses of computers. If there was no DHCP to a certain network, let us say in a network-caffe, then the administrator would have to set up the unique IP addresses of all the computers manually, instead of automatically.
This only means that the DHCP protocol will allow you allot of time-saving and a way to easily manage functions of the way computers “sign-up” for their IP addresses. DHCP protocol also has the amazing feature for you (as an administrator) to put a time-line or a deadline for an IP address on a certain computer.
For example, in a classroom, when a teacher wants to show the students something on the internet concerning their studies, he activates the DHCP protocol and puts a timeline of let’s say 15 minutes in which all the computers in the classroom have an IP address. For this time they can explore the internet or finish the task the teacher told them to.
Another feature of DHCP is that it can give out IP addresses to a number of computers even if that number is bigger than the available IP addresses. It means that the DHCP protocol can reconfigure networks.