Dynamic allocation may refer to any of the following:
1. Also referred to as a heap allocation, dynamic allocation is the system-level process of allocating and freeing segments of memory to be used by programs.
2. When referring to a network or network device, dynamic allocation or a dynamic IP address is the automatic assignment of an IP addresses by the network. For example, an IP addresses being assigned by DHCP.
Setting up a network with DHCP is much easier to control and setup then manually assigning every computer and device with a static IP address. However, because the IP address for a user can change this may cause issues if you rely on services that verify a user based off their IP address.