What does Network Address Translation (NAT) allow a router to do?

Network Address Translation (NAT) is a key networking technology used primarily for IP address management and security. The primary function of NAT is to translate private IP addresses, which are used within a local network, into public IP addresses, which are routable on the internet. This translation allows multiple devices on a private network to share a single public IP address when accessing external networks.

By using NAT, a router enables devices on the local network to communicate with external networks, while also providing a layer of security since internal IP addresses are not exposed to the internet. This is particularly important for organizations that have limited public IP addresses available, as NAT allows them to maximize the use of their IP address resources.

The other options do not accurately define the primary function of NAT. While forwarding packets is a necessary function of routers, it does not specifically highlight the addressing aspect that NAT focuses on. Monitoring network traffic relates more to the functionality of network management tools rather than NAT itself. Lastly, managing network collisions is a concern related to network protocols and media access control rather than the address translation capabilities of NAT.