Network Address Translation (NAT) is designed for IP address conservation. It enables private IP networks that use unregistered IP addresses to connect to the Internet. NAT operates on a router, usually connecting two networks together, and translates the private (not globally unique) addresses in the internal network into legal addresses, before packets are forwarded to another network.
As part of this capability, NAT can be configured to advertise only one address for the entire network to the outside world. This provides additional security by effectively hiding the entire internal network behind that address. NAT offers the dual functions of security and address conservation and is typically implemented in remote-access environments.