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To understand x402, we have to start with a “legacy feature” that has been shelved for nearly thirty years.
As early as 1997, the HTTP protocol reserved status code 402, which stands for “Payment Required.”But it has been deprecated due to the lack of viable payment methods.
Nowadays, crypto-native stablecoins have matured, L2 has reduced payment costs, and the rise of AI Agent has brought about real micro-payment needs.Therefore, Coinbase used this “button that has been dusty for many years” to launch the x402 protocol: when anyone or AI accesses paid content, they can complete on-chain payments without registering an account or jumping to a page.
Behind the seemingly simple “automatic payment” is actually a whole ecosystem that is being rebuilt.From protocol standards to infrastructure to upper-layer applications, x402 has the potential to reconstruct the payment logic of the Internet.
This article will go deep into the x402 ecosystem that is taking shape and see what protocols, chains, infrastructure and applications are really running besides Meme.
Protocol layer: allowing AI Agents to have payment capabilities
The protocol layer of x402 is not a single standard, but a set of modular combinations that solve three key issues: how AI Agents communicate, how to pay, and how to establish identity and trust.
The most important thing isx402 protocolitself, it is based onHTTP 402The status code design allows AI to automatically receive payment requests when accessing content or APIs that require payment, and complete on-chain transfers using stablecoins such as USDC. The entire process does not require registration or jumps.
In order to achieve collaboration between AI, Google proposedA2A (Agent-to-Agent)Protocol used to standardize communication and task handover methods between agents.Anthropic also launchedMCP protocol, providing an interface for AI to access tools and contextual data.Based on MCP, Google further releasedAP2 payment protocol, enabling AI Agent to call services on demand and complete automatic payments, while being compatible with traditional payments and x402.
The key to the implementation of these protocols is Ethereum’sEIP-3009 extension.It allows users to authorize token transfers through signatures without paying gas fees, solving the payment problem of “no ETH in the AI wallet”.To complement this, there are also ongoingERC-8004, it establishes an on-chain identity and reputation system for AI Agents, records execution records and trust scores, and helps service providers determine whether the agents are reliable.
To sum up, the x402 protocol layer is gradually building a “language + currency + trust” system that serves AI, allowing Al Agent to complete transactions, collaboration and payment without human participation, which is the first step in whether the entire ecosystem can run.
Infrastructure layer: making payment requests work
The x402 protocol defines the solution, but what really makes it run is a set of infrastructure responsible for verifying requests, completing payments, coordinating services, and linking AI to the chain.
first isCloudflare(@Cloudflare).As a global cloud platform, it jointly launched the x402 Foundation with Coinbase and integrated the protocol into its own CDN nodes and development tools.Cloudflare not only provides a global distribution network, but also supports a deferred payment mechanism of “use resources first and pay later” to help AI Agents smoothly obtain content and complete settlement.
followed byx402 Facilitator, that is, a payment aggregator (including multiple projects), responsible for helping AI agents complete a series of on-chain processes of “payment, settlement, and broadcast”.The user or AI only needs to initiate an HTTP 402 request, and the Facilitator will pay the gas, package the transaction and complete the on-chain broadcast.The EIP-3009 standard is used in the settlement process, allowing one-time authorization of USDC deductions. The entire process does not require AI currency holding or manual signatures, greatly simplifying on-chain interactions.
From the data in the figure below,Coinbase(@coinbase) is still the largest facilitator, processing more than 1.35 million transactions and covering 80,000 buyers;PayAI(@PayAINetwork) ranks second, active on chains such as Solana and Base, with a cumulative transaction volume of US$280,000, and even more users than Coinbase.Others such asX402rs、Thirdweb(@thirdweb)、OpenX402(@openx402) and others are also competing for market share.
Source:https://www.x402scan.com/facilitators
Outside of Facilitator, there are also “native settlement blockchains” built specifically for x402.Representative projects areKite AI(@GoKiteAI), as one of the first Layer1 blockchains to fully embed x402 payment primitives into the underlying layer, has received support from Coinbase Ventures, PayPal Ventures and other institutions.It does not directly handle payment verification (not Facilitator), but provides an execution and settlement environment for x402 transactions, supporting agents to automatically initiate, receive, and reconcile on-chain payments through standardized authorization instructions.
At the execution level, in addition to the native chain Kite AI designed for AI payments, the DePIN fieldPeaq(@peaq) also plays a key role.Peaq is a public chain focusing on machine economy. It has native support for the x402 protocol, allowing automatic payment and settlement between devices and agents.
Representative projects of the x402 collaboration layer areQuestflow(@questflow), developers can publish agent tasks on it, set prices, and complete on-chain settlement directly through x402. It has cooperated with Virtuals, Gate, etc.
In addition there areAurraCloud(@AurraCloud), Meridian(@mrdn_finance) Provides multi-chain settlement and custody services for the x402 protocol.
In summary, the infrastructure layer of x402 is being built around three core issues: how to send requests, how to collect payments safely, and how to quickly implement it on different chains, which determine whether the entire payment system can really run.
Application layer: What applications actually use x402?
After the x402 protocol and infrastructure are set up, it still depends on whether the application layer has moved. The current situation is that there are very few projects on the ground.
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Daydreams(@daydreamsagents): We are building an LLM inference platform that pays with x402.
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Heurist Deep Research(@heurist_ai): Web3-native AI research platform. Users pay per query with USDC and automatically generate multi-page research reports.
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Gloria AI(@itsgloria_ai): Pay-per-view news with x402.
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Snack Money API: Micropayment interface for X, Farcaster, etc., making micropayments and rewards around identity and social interaction.
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tip.md(@tipdotmd): Let the AI assistant directly help users complete encrypted tips in the chat interface. USDC tips go through the complete payment process through MCP+x402.
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Firecrawl(@firecrawl_dev): Web crawling and cleaning API, converts the website into data available for LLM, and performs pay-per-call through x402.
Overall, the application layer of x402 is still being explored. The functional platform has just started and has not yet achieved economies of scale. It still depends on who can make a product that is truly usable, payable, and reusable.
Meme: Price and popularity fluctuate greatly
As the popularity of x402-related concepts rises, a number of native Meme projects that “narrate narratives” quickly appear in the market, the most representative of which are those issued on the Base chain.PING.On the day of launch, the market value quickly exceeded 10 million US dollars.
In addition to PING, “PENG” and “x402” tokens have also appeared in the community. These Meme tokens currently do not form the core of the protocol, but they can provide attention, popularity and early liquidity.
What problems does x402 face since the implementation of the agreement?
Although the concept of x402 attracts attention, there are still many practical problems to be implemented.
First, there is a lack of truly usable products.At present, most projects are still in the test network and proof-of-concept stage, and the user experience is still rough for the time being.
Second, the technology stack is complex and integration costs are high.x402 involves a new set of protocols that integrate multiple modules such as payment, signature transfer, and agent communication, and has a high threshold for developers.
Third, compliance risks.It focuses on “no account, no jump payment”. Although it is highly efficient, it bypasses the KYC/AML requirements of the traditional payment system and may have regulatory concerns in some areas.
Fourth, the network effect has not yet formed.The core of the payment agreement lies in ecological synergy, but currently there are not many services and platforms connected to x402, and the ecosystem has not yet formed a self-circulation.
In summary, x402 is still some way away from “large-scale use”. There are still many thresholds that need to be broken from technology to actual implementation.
Opportunities to participate
From a participation perspective, x402’s long-term opportunities lie more in the layout of infrastructure and key platforms.
The first is the basic chain and infrastructure.The core of x402 relies on EIP-3009, ERC-8004 and other Ethereum ecological standards, while Base is currently the most important implementation chain. It has a strong closed-loop stable currency and a friendly development environment, and is expected to be the first to incubate leading products.Solana also has advantages in high-frequency payments and is suitable for agent micro-transaction scenarios.
Next is the native settlement blockchain Kite AI, as well as payment aggregators and service platforms, such as PayAI, Meridian, and AurraCloud. They are responsible for verifying payments, undertaking Gas, and connecting to APIs. Once a common entrance is formed, the value will be rapidly amplified.
As for the token side, it’s best to err on the side of caution.At present, x402-related tokens are small in size and volatile, and many Meme coins are still in the narrative-driven stage.Projects that truly have the value of payment implementation or platform use are more worthy of attention.
KOL perspective
At a time when market voices are divided, the views of many first-line builders and KOLs on the x402 ecosystem are also worthy of attention.
Haotian @tmel0211It is pointed out that today’s x402 craze is mostly driven by Meme hype, but the real “main course” – technology implementation and ecological formation is far from beginning.Only after market screening will high-quality projects emerge.He believes that those who regard x402 as a short-term hype have misunderstood the logic and rhythm of the entire track.
Laobai @WuhuoqiuFrom a historical perspective, it is pointed out that micropayment is not a new concept.From early Bitcoin and Lightning Network to Nano, IOTA, and BSV, the currency circle has tried many times to promote small-amount transaction applications, but it has always been difficult to implement them on a large scale.The difference with x402 is that for the first time, it has found the “subject” that really needs micropayments: AI Agent instead of human users.
Danny @agintenderIt further raises the perspective and points out that the greater potential behind x402 is the payment infrastructure of the “machine economy”.From on-chain knowledge collaboration, API economy to AI-driven DAO governance, all these M2M (machine-to-machine) transaction needs naturally require a frictionless, accountless, and automatically executed payment layer.
Blue Fox Notes@lanhubijiStarting from the architecture layer, it is believed that Facilitator, as a key link in payment verification and execution, is becoming one of the core infrastructures of the track.Projects such as PayAI, Coinbase, and Pieverse have formed a clear competitive landscape.
Finally,Zhixiong Pan @nake13Let’s raise a question from a long-term perspective: Can Agent truly “hold currency and pay”?Behind this involves key mechanisms such as private key custody and rights management.
To sum up, x402 may have fluctuated in popularity at present, but in the eyes of long-termists, it has just entered its real construction period.
