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This process of assigning the IP addresses by the DHCP server also known as DORA (Discover, Offer, Request, and Acknowledgement).
Step1:Your computer sends a "Discovery" request, asking for it's IP information from any listening DHCP servers.Step2:Any listening DHCP servers will "Offer" their configuration information to your workstation.Step3:You workstation chooses the best lease then "Requests" that lease from the corresponding DHCP server.Step4:The DHCP server you requested the IP configuration information from then "Acknowledges" your request and leases you the IP configuration information.
The easiest way to remember is "DORA" . Discover. Offer, Request, Acknowledge. All are broadcast signals.
DHCP Process contains following4 steps
STEP1: The Discover Phase
STEP2: The Lease Offer Phase
STEP3: The Lease Selection Phase
STEP4: The Lease Acknowledgment Phase
Lease allocation process
1. Client Creates DHCPDISCOVER Message
2. Client Sends DHCPDISCOVER Message
3. Servers Receive and Process DHCPDISCOVER Message
4. Servers Create DHCPOFFER Messages
5. Servers Probe And/Or Reserve Offered Address (Optional)
6. Servers Send DHCPOFFER Messages
7. Client Collects and Processes DHCPOFFER Messages
8. Client Creates DHCPREQUEST Message
9. Client Sends DHCPREQUEST Message
10. Servers Receive and Process DHCPREQUEST Message
11. Server Sends DHCPACK or DHCPNAK Message
12. Client Receives and Processes DHCPACK or DHCPNAK Message
13. Client Checks That Address Is Not In Use
14. Client Finalizes Lease Allocation