In more detail
Routers read each packet's destination address and send it on to the next hop. A home router also acts as the Default gateway, hands out addresses with DHCP, performs NAT and usually includes Wi-Fi and a basic Firewall.
Glossary
Networking
Router
A router is a device that forwards data packets between different networks, choosing the path for each one.
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See also
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Glossary
Default gateway
The default gateway is the router a device sends traffic to when the destination is outside its own subnet.
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Glossary
NAT
NAT (Network Address Translation) lets many devices with private IP addresses share one public IP address by rewriting addresses and ports.
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Glossary
DHCP
DHCP (Dynamic Host Configuration Protocol) automatically gives devices an IP address and the other settings they need to join a network.