x402 Protocol Enables HTTP-Native Micropayments for Autonomous AI Agents

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x402 is a new protocol designed to allow autonomous AI agents to pay for external services — such as API calls or compute resources — directly within standard HTTP request-response cycles using custom headers. The protocol binds cryptographic payment proofs to HTTP exchanges, leveraging ERC-20 token transfers on Ethereum-compatible blockchains like Base, an Ethereum Layer 2 network. It addresses limitations of traditional payment rails, including high per-transaction fees, slow settlement times, and custodial requirements that make micropayments impractical for agents operating at scale. Developers can implement x402 on both client and server sides, with the protocol handling payment requests, responses, and on-chain settlement verification. The specification comes with documented trade-offs around latency, complexity, and regulatory considerations, alongside benchmark data from real test deployments.

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