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CGN was developed to allow Internet Service Providers to use public IP addresses to support ever more end customers.
Standard NAT or NAT44 translates Private to Public IP addresses. One major function of CGN is NAT444. NAT444 translates Private to Private IP addresses, then to Public IP addresses. ISPs using CGN were able to replace Public IP addresses with Private IP addresses on customer’s CPE devices. This allows multiple customer networks to share a common Public IP address.
The diagram below shows three customer networks using private IP addresses on the Internet facing network ports. The NAT444 (Private, Private, Public) feature of CGN allows multiple end customers to share a single Public IP Address.
CGN implementation of NAT444, Private to Private to Public NAT
With CGN, Internet Service Providers, Carriers and Mobile Network Providers can provide services to large groups of customers. This is why CGN is often called Large-Scale NAT (LSN).
https://www.a10networks.com/resources/articles/carrier-grade-nat
