How Network Address Translation (NAT) Works

Network Address Translation helps improve security by reusing IP addresses. The NAT router translates traffic coming into and leaving the private network.

If you are reading this article, you are most likely connected to the Internet and viewing it at the HowStuffWorks Web site. There's a very good chance that you are usingNetwork Address Translation(NAT) right now.

The Internet has grown larger than anyone ever imagined it could be. Although the exact size is unknown, the current estimate is that there are about 100 million hosts and more than 350 million users actively on the Internet. That is more than the entire population of the United States! In fact, the rate of growth has been such that the Internet is effectively doubling in size each year.

So what does the size of the Internet have to do with NAT? Everything! For a computer to communicate with other computers and Web servers on the Internet, it must have an IP address. An IP address (IP stands for Internet Protocol) is a unique 32-bit number that identifies the location of your computer on a network. Basically, it works like your street address -- as a way to find out exactly where you are and deliver information to you.

When IP addressing first came out, everyone thought that there were plenty of addresses to cover any need. Theoretically, you could have 4,294,967,296 unique addresses (2³²). The actual number of available addresses is smaller (somewhere between 3.2 and 3.3 billion) because of the way that the addresses are separated into classes, and because some addresses are set aside for multicasting, testing or other special uses.

With the explosion of the Internet and the increase in home networks and business networks, the number of available IP addresses is simply not enough. The obvious solution is to redesign the address format to allow for more possible addresses. This is being developed (called IPv6), but will take several years to implement because it requires modification of the entire infrastructure of the Internet.

This is where NAT (RFC 1631) comes to the rescue. Network Address Translation allows a single device, such as a router, to act as an agent between the Internet (or "public network") and a local (or "private") network. This means that only a single, unique IP address is required to represent an entire group of computers.

But the shortage of IP addresses is only one reason to use NAT. In this edition of HowStuffWorks, you will learn more about how NAT can benefit you. But first, let's take a closer look at NAT and exactly what it can do...

What Does NAT Do?

NAT is like the receptionist in a large office. Let's say you have left instructions with the receptionist not to forward any calls to you unless you request it. Later on, you call a potential client and leave a message for that client to call you back. You tell the receptionist that you are expecting a call from this client and to put her through.

The client calls the main number to your office, which is the only number the client knows. When the client tells the receptionist that she is looking for you, the receptionist checks a lookup table that matches your name with your extension. The receptionist knows that you requested this call, and therefore forwards the caller to your extension.

Developed by Cisco, Network Address Translation is used by a device (firewall, router or computer) that sits between an internal network and the rest of the world. NAT has many forms and can work in several ways:

• Static NAT - Mapping an unregistered IP address to a registered IP address on a one-to-one basis. Particularly useful when a device needs to be accessible from outside the network.

In static NAT, the computer with the IP address of 192.168.32.10 will always translate to 213.18.123.110.

• Dynamic NAT - Maps an unregistered IP address to a registered IP address from a group of registered IP addresses.

In dynamic NAT, the computer with the IP address 192.168.32.10 will translate to the first available address in the range from 213.18.123.100 to 213.18.123.150.

• Overloading - A form of dynamic NAT that maps multiple unregistered IP addresses to a single registered IP address by using different ports. This is known also as PAT (Port Address Translation), single address NAT or port-level multiplexed NAT.

In overloading, each computer on the private network is translated to the same IP address (213.18.123.100), but with a different port number assignment.

• Overlapping - When the IP addresses used on your internal network are registered IP addresses in use on another network, the router must maintain a lookup table of these addresses so that it can intercept them and replace them with registered unique IP addresses. It is important to note that the NAT router must translate the "internal" addresses to registered unique addresses as well as translate the "external" registered addresses to addresses that are unique to the private network. This can be done either through static NAT or by using DNS and implementing dynamic NAT.

The internal IP range (237.16.32.xx) is also a registered range used by another network. Therefore, the router is translating the addresses to avoid a potential conflict with another network. It will also translate the registered global IP addresses back to the unregistered local IP addresses when information is sent to the internal network.

The internal network is usually a LAN (Local Area Network), commonly referred to as the stub domain. A stub domain is a LAN that uses IP addresses internally. Most of the network traffic in a stub domain is local, so it doesn't travel outside the internal network. A stub domain can include both registered and unregistered IP addresses. Of course, any computers that use unregistered IP addresses must use Network Address Translation to communicate with the rest of the world.

In the next section we'll look at the different ways NAT can be configured.