There are three methods to assign IP addresses to the computers in LAN (Local Area Network):
1) Static IP address: There are private ID addresses which are specifically used for LAN in the format 192.168.0.abc where, a, b, c is a number from 1 to 253. These addresses can be assigned manually to each computer. Every computer must have a unique IP address. Disadvantage of this method is that Windows Internet connection sharing program does not work with static IP addresses.
2) Dynamic address using APIPA (Automatic Private IP addressing): By this method IP addresses are dynamically assigned to the computers in the LAN. For mat for the IP addresses are: 169.254.abc.def where a, b, c, d, e, f is a number from 1 to 253. Disadvantage of this method is also that Windows Internet connection sharing program does not work.
3) DHCP (Dynamic Host Configuration Protocol) address: DHCP server is used for assigning IP addresses in LAN. IP addresses are assigned dynamically by DHCP. Windows Internet connection sharing program works with DHCP.