Network Address Translation
The process where a network device, usually a firewall, assigns a public address to a computer (or group of computers) inside a private network. The main use of NAT is to limit the number of public IP addresses an organization or company must use, for both economy and security purposes.
The most common form of network translation involves a large private network using addresses in a private range (10.0.0.0 to 10.255.255.255, 172.16.0.0 to 172.31.255.255, or 192.168.0 0 to 192.168.255.255).
NAT is a very important aspect of firewall security. It conserves the number of public addresses used within an organization, and it allows for stricter control of access to resources on both sides of the firewall.
Network Address Translation (NAT) are quite complex but happen so rapidly that the end user rarely knows it has occurred. Additionally, NAT can be used to allow selective access to the outside of the network.
http://whatismyipaddress.com/nat
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