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DHCP Server works under DORA process
D for Discover. The host machine will Broadcast discover packet in the network.
O for offer. Dhcp server listens this in port 68 and offer the ip, subnet mask, default gateway and dns in 67 port.
R for request. After receiving the offer packet the host machine request the server to assign those configuration.
A for Acknowledgement. The server respond back by sending ack packet to the host by conforming that everything is assigned as per request.