That’s right.
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we built a custom service worker that is downloaded from Netlify that allows us to use custom domains as per this tutorial: Internet Computer Content Validation Bootstrap
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The assets and site is all pulled from the IC
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once service worker is downloaded on browser, it can serve up content from IC canister
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That is the way custom domains are currently served on the IC. There is an ongoing RD project to remove the need for #1: Custom domains for ic0.app [Community Consideration]
We will publish a blog to explain more but that’s the basics.