- Internet Computer Protocol (ICP) is a decentralized cloud alternative to traditional players and offers fully on-chain computing and storage facilities.
- It supports blockchain-native and privacy-sensitive AI applications without relying on centralized providers.
Cloud infrastructure businesses have shot up significantly as global spending in Q3 2025 reached a massive $102 billion, surging 25% year-over-year. Amid these developments, Internet Computer Protocol (ICP) has positioned itself as an alternative to traditional hyperscale cloud providers. The DFINITY Foundation, behind ICP, is celebrating this development in a greater push for decentralized cloud.
ICP Makes Major Inroads In Global Cloud Infrastructure
During Q3 2025, there has been a major surge in global cloud infrastructure due to the rising enterprise demand for scalable compute and storage. This surge comes along with a strong market sentiment around artificial intelligence (AI), data-intensive applications, and other digital transformation initiatives.
However, with the rising demand for cloud infrastructure, concerns also remain about data protection, centralization, and privacy. This is true for workloads related to blockchain and AI.
As a result, Internet Computer Protocol (ICP) is positioning itself as an alternative to the traditional cloud providers. It promotes a decentralized, on-chain cloud model that can run different applications. Besides, ICP also allows AI workloads to run directly on its blockchain infrastructure without depending on centralized data centers.
Supporters argue that this approach could be especially relevant for privacy-sensitive use cases and blockchain-native applications. They also added that any dependence on centralized cloud providers may introduce regulatory, security, or trust concerns.
By keeping computation and data fully on-chain, ICP aims to offer a sovereign cloud environment aligned with Web3 principles. As reported by CNF earlier, the main agenda of ICP, this year in 2026, is to focus on Web3 no-code tools and mass market cloud engines. Speaking on this, ICP founder Dominic Williams wrote:
A “world computer” blockchain is onchain cloud. Only ONE (1) blockchain does that today – ICP. Meanwhile, 1000s host onchain software that can only process tokens (“smart contracts”). In 2026, people will wake up to the power of ICP through Caffeine AI = build onchain for real”.
Key Developments Lined Up for 2026
The Internet Computer Protocol has some key developments lined up for 2026. DFINITY Foundation has announced plans to reduce inflation on the Internet Computer network by 70% in 2026, with more details coming in their upcoming Mission70 whitepaper.
The inflation of the ICP happens due to the minting of tokens issued as rewards to node providers and governance participants. As a result, the annual inflation is currently at around 14%, based on recent network data.
Dominic Williams, the founder of DFINITY, said that the Mission70 whitepaper is ready for release on January 14, 2026. He added that the document will detail the mechanisms and policy changes the foundation plans to implement to meet its inflation-reduction targets.
These changes are part of ICP’s shift in long-term economics by lowering supply growth and maintaining incentives for network security and governance participation.
