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NAT stands for Network Address Translation. It's a process used in computer networking to translate private IP addresses within a local area network (LAN) into public IP addresses used on the internet. NAT allows multiple devices within a private network to share a single public IP address, which helps conserve IPv4 addresses and enhances network security by hiding internal network structure from external entities. It's important because it facilitates communication between devices on a private network and the internet while also providing an additional layer of security.