on studying the Harshorne book, I have some question for the formal scheme...
Let $X$ be a noetherian scheme and let $Y$ be a closed subschme defined by a sheaf of ideals $\mathcal{I}$. Suppose that $\widehat{X}$ be the formal completion of $X$ along $Y$ i.e. $(\widehat{X},\mathcal{O}_{\widehat{X}})=(Y, \varprojlim \mathcal{O}_X/\mathcal{I}^n)$.
I don't understand that the stalk of the sheaf $\mathcal{O}_{\widehat{X}}$ is a local ring...
If $Y=\{p\}$ is a closed point, why $\mathcal{O}_{\widehat{X}}$ is the completion of $\widehat{\mathcal{O}}_p$ of the local ring of $p$...?