NAT operates by translating what type of addresses?

Network Address Translation (NAT) is a technique used primarily to allow internal devices on a private network to communicate with external networks, such as the internet, while using a single public IP address to represent multiple devices. The correct answer highlights that NAT specifically translates internal (private) addresses to a single external (public) address.

In a typical NAT scenario, when a device from within the private network sends a packet to the internet, NAT changes the source IP address of the packet from the internal address to the public address assigned to the NAT device, enabling the internal device to communicate with outside resources. This translation is essential because it allows multiple devices on a local area network (LAN) to share a single public IP address, thus conserving IP addresses and providing a layer of security for the internal network.

The concept revolves around the distinction between private and public addresses, as NAT is primarily used to convert internal, non-routable addresses into one or more routable public addresses for outbound traffic, and it can manage the reverse process for inbound traffic as well.