NAT translates private RFC 1918 addresses to a public address so private hosts can reach the Internet. PAT (overload) is the variant that maps many private hosts onto a single public IP via port numbers — the configuration almost every home and small office uses.
Each interface participating in NAT must be marked: 'ip nat inside' on the LAN side, 'ip nat outside' on the WAN side. The router applies translation on packets crossing between them.
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