The Internet Computer (ICP) is redefining what’s possible in the blockchain space by seamlessly integrating with Ethereum through its groundbreaking Chain Fusion technology. This powerful synergy empowers developers to extend Ethereum-based decentralized applications (dApps) with ICP’s advanced capabilities—unlocking new levels of efficiency, scalability, and user experience across DeFi, NFTs, payments, SocialFi, and more.
With full support now live for Ethereum and other EVM-compatible chains, ICP smart contracts can interact directly with EVM networks. This means developers can augment existing smart contracts, transfer tokens across chains, and invoke functions on Ethereum-based protocols—all while leveraging ICP’s unique features like threshold signing, oracles, DAO frameworks, privacy tools, passkey authentication, smart contract wallets, and reverse gas fee models.
Extend Ethereum with ICP Capabilities
Ethereum remains the leading blockchain for decentralized finance (DeFi), hosting billions in total value locked (TVL). By integrating with the Internet Computer, Ethereum projects gain access to transformative cross-chain benefits:
- Increased asset liquidity
- Expanded market reach
- Improved scalability and throughput
- Near-instant transaction finality (1–2 seconds)
- Ultra-low transaction costs (fractions of a cent)
But beyond performance, ICP brings entirely new functionality to Ethereum dApps.
100% Onchain Web3
Decentralization shouldn’t stop at the smart contract layer. With ICP, you can host your entire dApp frontend and backend directly on the blockchain—eliminating reliance on centralized cloud providers. This enables truly trustless, censorship-resistant applications that align with Web3’s core principles.
👉 Discover how building fully onchain dApps boosts security and decentralization
Gasless Token Swaps with ckTokens
One of the biggest pain points in Ethereum usage is high gas fees. In May 2024, average transaction costs for USDC and USDT swaps reached $6.66 and $9.93 respectively—making small transactions economically unviable.
Chain-key tokens like ckETH and ckERC-20 solve this problem by enabling low-cost swaps on ICP-based decentralized exchanges (DEXs). Users can send and receive ETH-backed value with:
- Finality in 1–2 seconds
- Fees as low as a few cents
- No gas fees required
These tokens are fully backed 1:1 by their underlying assets and adhere to ICP’s token standards (ICRC-1 and ICRC-2), ensuring seamless integration with all ICP wallets. The backing is transparently verifiable via onchain canister dashboards and real-time metrics.
Web2 Integration Made Simple
Smart contracts need real-world data to function effectively. ICP enables direct connectivity between blockchain logic and external Web2 systems—allowing dApps to fetch live price feeds, weather data, news updates, and more without relying on third-party intermediaries.
This native bridge between onchain and offchain worlds opens up powerful use cases in insurance, prediction markets, supply chain tracking, and automated trading.
Multichain DeFi: The Future Is Interoperable
The future of decentralized finance isn’t siloed—it’s multichain. With Chain Fusion, developers can build DeFi solutions that span ecosystems, combining Ethereum’s robust ecosystem with ICP’s speed and cost-efficiency.
Imagine a user swapping stablecoins across chains instantly, borrowing against NFTs hosted on Ethereum using a lending protocol on ICP, or earning yield across multiple networks—all within a single interface.
This level of interoperability isn’t theoretical—it’s live today.
EVM on the Internet Computer: Bring Solidity to ICP
Thanks to Bitfinity, an EVM (Ethereum Virtual Machine) runs natively on the Internet Computer. Developed by a team from the ICP community, Bitfinity provides a turnkey solution for deploying and running Ethereum dApps using Solidity—the most widely used smart contract language.
By migrating or bridging dApps to Bitfinity, developers gain:
- Sub-second finality
- Near-zero transaction fees
- Full compatibility with existing tooling (MetaMask, Hardhat, etc.)
This makes Bitfinity one of the most efficient Ethereum scaling solutions available—without sacrificing security or decentralization.
👉 See how EVM compatibility unlocks scalable dApp development
How Chain Fusion Works: Behind the Scenes
Chain Fusion relies on two core innovations: EVM RPC Canister and Chain-Key Signatures.
EVM RPC Canister
The EVM RPC canister is an ICP smart contract that acts as a bridge to Ethereum and other EVM chains (including Arbitrum, Optimism, and Base). It exposes an onchain API that simplifies cross-chain communication for developers.
With just a few lines of code, ICP canisters can:
- Query blockchain state
- Send transactions
- Monitor events
And as new networks emerge, interoperability can be expanded simply by adding new API keys—no hard forks or protocol upgrades needed.
Chain-Key Signatures
At the heart of Chain Fusion is threshold ECDSA cryptography. ICP nodes work together to generate cryptographic signatures that are indistinguishable from those produced by a single private key.
This allows ICP canisters to:
- Derive valid Ethereum addresses
- Sign transactions securely
- Own ETH and ERC-20 tokens
- Interact with any EVM smart contract
All of this happens autonomously onchain—no custodians, no bridges, no trusted third parties.
Real-World Projects Building on Ethereum + ICP
A growing ecosystem of innovators is already leveraging this integration to build next-generation applications.
Bitfinity
A high-performance EVM that lets developers deploy Solidity smart contracts directly on ICP—unlocking speed and scalability.
Masquerade (MSQ)
A MetaMask Snap-powered wallet supporting ICRC-1 payments, enabling seamless interaction with ICP-based tokens.
zCloak Network
Building a zero-knowledge co-processor on ICP for privacy-preserving computation using chain abstraction.
Sign In With Ethereum (SIWE)
Provides libraries and templates to help Ethereum developers implement EIP-4361 standard authentication in ICP dApps.
Helix Markets
A hybrid spot orderbook DEX built on ICP—offering institutional-grade trading experiences with DeFi transparency.
Orally
A decentralized oracle network bringing real-world data and digital asset prices onchain—securely and reliably.
Chainsight
A data processing layer that leverages historical, real-time, and cross-chain data to power advanced analytics in dApps.
NFID Vaults
The world’s first omnichain smart wallet protocol—offering top-tier security against theft, loss, collusion, and fraud.
Frequently Asked Questions (FAQ)
Q: What is Chain Fusion?
A: Chain Fusion is a technology that enables direct communication between the Internet Computer and external blockchains like Ethereum. It allows ICP canisters to sign transactions, call smart contracts, and manage assets across chains securely and without intermediaries.
Q: Are ckETH and ckERC-20 tokens safe?
A: Yes. These chain-key tokens are fully backed 1:1 by actual ETH or ERC-20 tokens held in reserve. Their backing is publicly verifiable onchain through transparent canister metrics.
Q: Can I use my existing Ethereum tools with ICP?
A: Absolutely. Thanks to Bitfinity’s EVM implementation, you can use MetaMask, Hardhat, Remix, and other familiar tools to develop and interact with dApps on ICP.
Q: Do users pay gas fees when using ICP-augmented dApps?
A: No. One of the major advantages is gasless interaction. Users benefit from reverse gas models where apps cover fees, enabling frictionless experiences—even for microtransactions.
Q: How does Chain-Key Signing work?
A: It uses threshold cryptography where multiple ICP nodes jointly generate a valid ECDSA signature. This allows canisters to control Ethereum addresses without holding private keys centrally—ensuring security and decentralization.
Q: Is this integration secure?
A: Yes. All operations occur through verified canisters using formal cryptographic proofs. There are no bridges or wrapped assets requiring trust in third parties.