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I am a bit confused on how to install and run docker in GCP instance.

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Docker is a container orchestration tool where you can install with the docker.io package.

Here GCP is a cloud provider where you will use for launching the resources on cloud data centers. Here VM will be created with the OS, so for installing you need to follow the same instructions with respect to OS(Does not dependent on the cloud platform that you are launching the instance). 

Interested in learning more facts on Google cloud? Check out this training on Google cloud certification.

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