DHCP works on DORA PROCESS (DISCOVER - OFFER - REQUEST - ACKNOWLEDGEMENT).

1. When a Client needs an IP configuration, it tries to locate a DHCP SERVER by sending a broadcast called a DHCP DISCOVER. This message will have a Destination IP of 255.255.255.255 and Destination MAC of ff:ff:ff:ff:ff:ff.[SOURCE IP - 0.0.0.0 , Destination IP - 255.255.255.255, Source Mac - Mac address of Host, Destination Mac -FF:FF:FF:FF:FF:FF]
2. On Receiving DHCP Discover, Server sends a DHCP OFFER message to the client. The DHCPOFFER is a proposed configuration that may INCLUDE IP address, DNS server address, and lease TIME. This message will be unicast and have the destination mac address of DHCP client's mac address. The source mac address will be that of the DHCP server.[S.Mac - Mac address of Server , D.Mac - Mac address of Host]
3. If the Client finds the Offer agreeable, it sends DHCP REQUEST Message requesting those particular IP parameters. This message will be a Broadcast message. [Source Mac - Mac address of Host, Destination Mac - FF:FF:FF:FF:FF:FF]
4. The Server on receiving the DHCP REQUEST makes the configuration official by sending a unicast DHCP ACK acknowledgment.
5. [Source Mac - Mac address of Server, Destination Mac - Mac address of Host]

DHCP works on DORA Process (DISCOVER - OFFER - REQUEST - ACKNOWLEDGEMENT).