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NAT or Network Address Translation actually comes in several flavors. Simply NAT and NAT PT (Port Translation) are available in both IPv4 and IPv6.

NAT uses a router or Integrated Service Router to translate your private IP address to a public routable address. Most home DSL or cable modems provide NAT services. 192.168.0.0 through 192.168.255.255 are defined as private addresses or "Not routed over the internet" addresses. There are other ranges such as 10. which won't be not routed over the public Internet

What NAT does is translate your private addresses to a public address or list of possible public addresses. PT which is sometimes referred to as port overload will send request using the same public address by associating the private address with a specific port.

Simply this means that even if only one public address is available many private requests can be serviced by assigning and then tracking a port assignment at the NAT point of service.

So if two NAT/PT serviced hosts both request different HTTP page downloads on the same public address each is assigned a different TCP port. When the request return they are routed to each private address based on the port number. Cool how it works.

This is not the same as proxies so don't get confused.

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Q: How does NAT allow private addresses to communicate over the internet?
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