DHCP is a server protocol which by default assigns an IP host with its address and additional linked configuration statistics such as the subnet mask and default gateway.
Hence, they help to automate the entire process of dynamic gateways centrally
How DHCP Technology Works
DHCP delivers a programmed mode to allocate and update IP numbers along with other configuration data on a network. The DHCP server delivers this statistics to a DHCP client through the interchange of a chain of information, called as the DHCP conversation or the DHCP transaction. Let’s assume that if the DHCP server and DHCP clients are positioned on unrelated subnets, a DHCP relay agent is used to simplify the transaction.
Find more info: DHCP Job Description