Dynamic IP Addressing is a method used to assign temporary Internet Protocol (IP) addresses to devices on a network. Instead of having a fixed address, a device receives a different address each time it connects, which helps manage the limited number of available addresses. This process is typically handled by a server using the Dynamic Host Configuration Protocol (DHCP). When a device connects to a network, the DHCP server assigns it an available IP address from a pool of addresses. This allows multiple devices to share a smaller number of addresses efficiently. Dynamic IP addressing is commonly used in home networks and by Internet Service Providers (ISPs) to simplify network management.