Imagine the software in your router like a library. People constantly getting books and putting them back, but sometimes a book gets misplaced. The books still there and can be found, but it takes longer because it’s not where it should be. How would you solve this problem? You’d close the library, put everything back where it belongs and reopen with everything in the right place.
That’s basically what resetting your router is doing. Shutting down the software and re-establishing all the connections and protocols as they should be.
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