An Internet Exchange Point (IXP) is a physical infrastructure that allows different Internet Service Providers (ISPs) and networks to connect and exchange traffic directly. This helps improve the efficiency of data transfer, reduces latency, and lowers costs for network operators by minimizing the need for third-party transit providers. IXPs play a crucial role in the overall functioning of the Internet by enhancing connectivity and promoting local traffic exchange. They can also contribute to the growth of the local Internet economy by enabling regional content providers and businesses to connect more effectively with users in their area.