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How does NAT (Network Address Translation) work?

address NAT Network Translation
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How does NAT (Network Address Translation) work?

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A. In a typical scenario of the LAN Modem dialing an Internet Service Provider, the Internet Service Provider will dynamically assign the LAN Modem an IP address. The LAN modem will translate the source IP address in Internet-bound IP packets to this valid, routable Internet IP address. When a packet is received from the Internet, the reverse process happens; the Internet Service Provider-assigned IP address is replaced with the IP address of the workstation to which that packet is directed. For example, assume the workstation (192.168.1.2) is browsing (TCP/UDP port 80) the 3Com web site (192.156.136.22), and was assigned a dynamic IP address of 136.22.36.12 by the Internet Service Provider. Note the source port number is generated randomly by the workstation, and is normally above the well known ports (RFC 1700).

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