NAT is an acronym for Network Address Translation. It is a process of mapping multiple local private addresses to a public one inside a private network. It can be configured to assign only one address for the entire network for both security and economic purposes.
NAT allows a router to act as an interface between the public network or the internet and a private or local network. It can also be used to enable selective access outside the network and conserve private IP addresses used within an organisation hidden from the world.