20% BURN is COMING: ICP Cloud Engines Demo!

Added: 2026-05-12

[00:00:00]Hello guys and welcome to zero to her and welcome to this presentation/cloud engines demo by Dominic Williams in which he will explain the value proposition of cloud engines how defininity is planning to generate a lot of revenue and capture a big part of a multi- trillion dollar revenue market for the decentralized cloud narrative in the future or rather for the cloud narrative and ICP currently in terms of value proposition does not have any competitor in the decentralized cloud narrative especially because of the tailored solutions that they can offer to big institutional clients and governments as well. In this video, Dominic is going to talk about the value proposition but also display the impact on money metrics, how does the system work and also how to monetize this moving forward. In this video, I will also provide my own comments and opinions about this whole thing. So stay tuned and let's dig deep into the rabbit hole. Hello everyone again. I'm super happy to be back with one of the most consequential demos in the history of the Internet Computer Project. Since 2019, more than $500 million has been spent developing ICP technology. And we've now reached a critical moment where this technology is being productized and taken to the mass market. Cloud engines together with the AI that builds on them is the foundation upon which the internet computer shall enter the $1 trillion revenue a year cloud market along with something called the intelligence gateway which I hope to share soon in a separate demo. Cloud engines allow enterprises and anyone else that needs them to create sovereign frontier clouds where hosted applications and services are immune to infrastructure hacks and all is on because they're running on a cloud platform created by the most advanced network math in the world.

[00:02:08]AI will build nearly all our online functionality for us going forward and the internet computer is the ultimate platform for supporting that paradigm.

[00:02:18]With that said, let's take a peek at cloud engine technology under development to see what's coming in the very near future now and what exactly these engines can do.

[00:02:30]So let's open the development wizard that allows you to create new cloud engines. So you create a cloud engine by combining different nodes. The nodes all have to have the same node class. It's a bit like with the internet computers gen one and gen two nodes. So let's start off by selecting a node class. Um you can see there's a bunch standard performance, high performance and so on.

[00:02:53]Let's just work with standard nodes. All right. And um select a bunch. Let's take this octane SA node, this defininity stiff tongue node. Um, this octagon SA node and this biggest capital node. Ah, now I've t I've accidentally taken two nodes from octagon SA. So down here it's warning me that fault uh we haven't got the fault tolerance we could have um strictly speaking because we've got two nodes from the same provider. So, I'll select one of those and choose um a node for pinball technology. Okay.

[00:03:33]So, we've got four nodes. Let's um continue.

[00:03:40]Um name your cloud engine and review.

[00:03:43]Okay. Going to call it cloud engine demo. Right. This is where we pref.

[00:03:54]So first of all we have to select um how long the engine should run between topups. So this is a mass market product. So um you know the prices are quoted in dollars. Um what's actually happening behind the scenes is uh the payment processor will take the money convert it into ISP tokens convert those tokens into cycles and use them to charge up the cloud engine we're creating. But of course this is an open network and that means there'll be different um payment service providers um on offer. Okay guys I wanted to provide a very short comment on this point because this point was simply subject to many controversies in the past related to utopias. So in the past we had something called utopia which was basically a cloud engine a private subnet and the idea initially from the Dominic Williams was a spin-off a new entity and this entity still exists is called utopia. However many people in this community were against this idea and the same idea was shared for caffeine AAI. They did not want a new token for caffeine AI. They did not want a new token for for Utopia. So everything should be on ICP and I agree with this idea overall. Now many people also asked me what about payments? Are these governments going to pay in ICP?

[00:05:21]Is ICP going to be burned? Yes, of course. But in the back end, which is great, great to see because simply those large institutions, governments, they don't want to mess perhaps with cryptocurrencies. They want to simply pay in dollars. we can do the conversion in the back end for them by ICP convert ICP to cycles ICP will be burned and this is how we achieve our burn which is once again very good to see now as well um we are going to discuss about the fee as well and I did mention in multiple videos that finally node providers will have an incentive to run their own nodes to generate some revenue and 20% of the revenue will be burned in a 100% fully deflationary model which is by the way a very good pro what Dominic Williams has showed you is a very good product and the incentives are there and the target audience is there because they have an existing pipeline of institutions and governments as I did display yesterday in the video and by the way two more parts are coming very soon uh the town hall Pakistan digital authority so they mentioned as well and they know as well that definitity is talking with multip multiple governments worldwide and those governments like this idea that ICP is talking with multiple parties because multiple parties understand the value proposition of ICP as technology. So this point clears doubts from from many people I believe and this is overall good to see for for me practically I'm a practical guy. I'm a data analyst. What I want to see is cycle burn rate or rather what I want to see is burn. I want to see ICP being burned in one way or another. This is a good way to burn it. So be it very very good to see equals value proposition increased usage and increased adoption for the internet computer. So we we've said that we we want this cloud engine um just to be charged up with two weeks of cycles. And the next thing is asking is how long should a frozen engine survive before deletion. Um this is like the emergency balance um that keeps it going when you kind of run out of um cycles. Let's just put that to none because we want to try the cloud engine technology with a minimum of cost. It's it's warning me that there's no emergency reserve. Check that. Say it's okay. Down here, you can see what's going to be happening. Uh USD from your card goes to the defininity foundation which buys ICP which converts it to cycles and through the network nervous system that's creating the cloud engine. Um that that gets um put put onto the engine itself. Okay. Next.

[00:08:00]Next.

[00:08:02]So the internet computer is now spinning up this cloud engine. It's actually the test net, but exactly the same thing will happen on the live network. Okay.

[00:08:10]So um there we go. We've got a a new engine running. Actually, no, we haven't. It's it's provisioning there.

[00:08:18]You can see. But luckily we've um got a pre-created cloud engine so we don't have to pause. Let's open that thing.

[00:08:26]Okay. Um you can see this one's uh got four nodes, too. By the way, you can have any number of nodes you like in your engine. Four. Four is the minimum.

[00:08:35]Um, the next good number is seven. After that, 10, 13, and so on. If you wanted, you could have a 100 nodes par powering your cloud engine. The more nodes that you have in your cloud engine, the higher the security, the higher the resilience, and also the higher the query workload throughput. Um if you want to scale the update uh workload throughput you um increase the size you increase the size of your nodes go up a class and then once you've gone to the very top class um you can split your engine in two to double um the update workload throughput. Okay guys, I will stop the video here just to remind you that the very first Pakistani cloud engine has on boarded four nodes across four independent Pakistani cloud providers. Meaning that this is an infrastructural design for them to go with four nodes. But in the future, they could decide, as Dominic has mentioned and explained, to increase the amount of nodes from four to seven to 10 to 13, which was the case for most subnets that are currently running with 13 nodes.

[00:09:47]However, private uh subnets are different. They could run with less nodes or perhaps if they would want that, they could increase the number of nodes moving forward. Therefore, I believe when we are going to get multiple institutions and governments, they're going to decide based on their needs what is the best infrastructural design and solution for their needs, which is great because it's tailored and it provides flexibility.

[00:10:18]All right, so let's go to the app center. Oh, by the way, this is very cool. Last thing I should mention, if you look at the map, you can see an AI node. So you can also add AI nodes to your cloud engine. And if you do that um you can run your large language model inference on open weights models on hardware that you provision. And that's important for some people. Some people want to actually run their inference in a specific place on hardware that that they control. If you it's not a requirement and you can add any number of uh AI nodes to your cloud engine or none. If you don't add any um your inference will go through the um internet intelligence gateway that's coming I think I mentioned it earlier um whether you run you know AI node within your cloud engine or whether you're using the gateway which is funneling your inference onto some external AI platform in every case um it's possible to verify the inf inference you're performing at very low cost all right let's go to the app center for this cloud engine. Now, um this shows some standard apps, some of which have already been installed and some of which um are there to be installed. If we scroll down the page, um you'll see that we can uh install custom apps. So, internet computer apps are packaged inp files. Um let's just see if we can install one of those quickly. Um, okay.

[00:11:49]Click here to browse. Uh, private bundle. I've got this. Private instant messaging. ICP. Let's add that thing.

[00:11:58]Okay. Make sure you trust the source before uploading any software, etc. Okay. Let's just watch that. So, um, while that's happening, uh, let's continue and, uh, look at some of the apps that are already installed. Some of the standard apps that are already installed.

[00:12:17]So one is sovereign team share or should I say sovereign slack. So this is a version of slack that is running on this cloud engine. And you know this is very important for a lot of corporations and governments around the world. They want to have their own sovereign messaging system um where all the messages are stored on their nodes on their own private sovereign cloud that they completely can control. And this is guys once again the value proposition of ICP versus other centralized cloud providers because you can simply deploy your applications and you have full control over their nodes and you have full control over your data while on Amazon Web Services you simply don't. If you're a government or a large institution and I believe in the past Kyanga made a very good example if you're Coca-Cola company and you have a lot of secrets that you're sharing through Slack or through social media uh messaging apps that you're using at work. Well, a competitor may be very interested to hack your AI model or whatever you use for your purposes to get to know what you're doing, what the composition of XYZ formula is or what is your secret regarding a specific thing. And this information is extremely valuable. So you want to have full control over your information, especially if you're using AI models and you're feeding information in the AI model. So there is a value proposition in feeding information in the AI model of course, but there is also a big downside, the security risk of complete loss of your data. So many companies now have a headache because of that and they might be scared to lose control and access to their most important data. This and information equals power, information equals money.

[00:14:21]So the value proposition of ICP as a decentralized cloud provider is very high because it can offer a tailored solution to those governments and institutions that need to run privately their applications in their own nodes so they can fully control the the data that they're publishing. And this is also the case for NOS's for militaries and for all those institutions that are uh using and working with classified data. And this is once again why I did mention, look, there is at least one large company that is listed on a major exchange that is that is currently working with ICP or rather that reached out to ICP because of a tailored solution for their problem and they're handling specific type of data and the value proposition for them to use this type of service is extremely high and there is nobody else that can offer such a tailored solution and this is why they have chosen ICP and reached out independently to definitity. So the value proposition is there people know what ICP is doing and they will get to know even more after this gets mainstream. So I got a very good comment today on a video. Why did we choose Pakistan or why did we choose XYZ? And my answer is we are choosing um governments that are operating in emerging markets. So Pakistan is one of those and the reason is that simply the institutions and governments in the west are not so open to new infrastructure because as mentioned in the town hall they have a lot of existing infrastructure in web 2 that they have paid a lot of money. So now changing this whole in or rather replacing this whole infrastructure is a very very costly for them. However, governments and institutions that don't have access so much access to this sort of infrastructure, they are looking to leapfrog everyone else by using new technology. So they are going to be the ones that are going to have a certain a lot of profit margin and they are going to be in pole position because they don't have so much to lose compared to governments in in Europe that are by the way not so open to new technologies in general. That's the mentality. Uh Europe is old is an old continent a country made up of a lot of old people. While in Pakistan you have the vast majority of the population that are young people.

[00:17:09]They're very open to to crypto and to web three as well. And I was looking some statistics and it came out that more than 20 million people hold crypto in Pakistan. 9 million plus people hold Bitcoin and the vast majority of the population is knows what crypto is. And there was this discussion also in Davos.

[00:17:34]Um the person representing City Bank, he was mentioning the Philippines and many other countries in which a lot of people are using crypto on a daily basis to transact or to do something because they're getting paid in crypto. They're working for US companies or European companies and they get payments in crypto. that is seamless because in the past it took like a week to send money to Thailand or to the Philippines or maybe a few weeks. Now this is seamless.

[00:18:04]It's done on the blockchain makes sense for them because they're a young population. So for Definitely facing a crisis due to geopolitical tension. Therefore, the value proposition for those governments is even higher because one, they don't have so much to lose as those governments in Europe and two because they're facing a crisis that they need to respond to. So, they have a higher incentive to adopt this type of technology. And these are the two main reasons why we are going with Pakistan and perhaps the next governments down on the line. and and I did mention potentially the United Arab Emirates are going to be in this area.

[00:18:51]So, uh that's my point.