What type of IP addressing allows multiple devices to share the same IP address?

Network Address Translation (NAT) is a crucial technology that enables multiple devices on a local network to share a single public IP address when accessing external networks, such as the internet. This is particularly useful in conserving the limited supply of public IP addresses and enhancing security by allowing internal devices to remain hidden behind the NAT device.

NAT works by modifying the IP address information in the packets as they pass through the NAT router. When an internal device sends a request to the internet, the NAT device replaces the private IP address of the device with its own public IP address. It keeps a translation table that maps the internal IP address and port to the public IP address and an external port number. When replies come back from the external network, the NAT device uses this table to forward the packets to the correct internal device.

This method not only facilitates efficient use of IP addresses but also provides a layer of security by concealing internal IP addresses from the outside world. Overall, NAT is widely employed in home routers and enterprise networks to manage IP addressing effectively.