Dynamic Host Configurations Protocol(DHCP) is a protocol to give a configuration to the host device, with its own IP address, a subnet mask and a default gateway. The process happens in four stages.
The host that wants to join a network finds a DHCP server, it broadcasts a DHCP discovery message over the network. At this point the host has no subnet address or the IP of the DHCP server, so it just broadcasts to all nodes.
The DHCP server will discover the message that the host is broadcasting and send a reply, which would contain a proposed IP address, network mask, lease time and a transaction ID. Then it would take the details and link it to the new client.
The new client responds to the offer which accepts the configuration parameters.
The server responds to the DHCP request message with a DHCP ACK message, and it confirms the requested parameters.