Network Address Translation
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NAT is short for Network Address Translation; NAT operates at the boundary of internal IP addresses and the public Internet. Every computer on a network and every computer on the Internet are assigned a string of numbers, as information is routed over a network or the Internet the information knows where to go since it is addressed for your IP address. Think of it as mail with your home address on it.
If your using a router with NAT enabled on it, then web pages will not see your true IP address instead they will see a IP address assigned to the NAT enabled router. A couple different type of address translation are static and dynamic. In static address translation the internal computer always uses the same external IP address, companies must publish the IP's of their public servers, static address translation supports this and gives a one to one assignment between the published IP and the internal IP address.
Dynamic address translation gives you the ability to conserve public IP addresses, due to the limitation on IP version 4 we are running low on IP Addresses for the public domain. NAT provides a way to have multiple computers on one public IP. The NAT enabled router assigns an internal IP to each computer on the network, when a computer is done with the IP it is placed back in the pool for later use. The computer with the internal IP addresses then connect to the NAT router, then the NAT router continues sending the information via an external IP...