x402 Protocol Embeds Crypto Micropayments Directly Into HTTP for AI Agents

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The x402 specification repurposes the long-dormant HTTP 402 Payment Required status code to enable autonomous AI agents to pay for API resources without manual billing setup. When a server returns a 402 response, it includes a WWW-Authenticate header specifying the price, currency, and payment instructions, typically in USDC on a low-cost blockchain like Base. The client agent constructs and submits a payment transaction, then retries the request with proof of payment in the Authorization header to receive the resource. The protocol is designed for granular, per-call pricing in fractions of a cent, making it practical for services such as LLM inference or data feeds. Key trade-offs include added latency from blockchain round-trips and the complexity of wallet management, though using stablecoins mitigates price volatility risk.

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