Coinbase, a leading cryptocurrency exchange, has recently unveiled a groundbreaking payments protocol called x402, designed to facilitate stablecoin transfers over standard internet protocols. This innovative protocol allows for instant stablecoin payments directly through the HTTP (Hypertext Transfer Protocol), enabling APIs, applications, and AI agents to transact autonomously.

The x402 protocol aims to revolutionize online payments by creating a seamless system that integrates stablecoin transactions into web interactions with minimal code integration. By leveraging stablecoins, which are cryptocurrencies pegged to a stable asset like the US dollar, x402 streamlines the process of transferring value over the internet, eliminating the inefficiencies associated with traditional payment methods such as credit cards and bank transfers.

According to Coinbase, x402 addresses the shortcomings of existing payment rails, which were designed for a pre-internet era and are characterized by slow processing times, high fees, and geographic limitations. By embedding stablecoin payments directly into web communications, x402 paves the way for a faster and more automated internet economy.

Erik Reppel, the head of engineering at Coinbase Developer Platform and co-author of the x402 white paper, emphasized the transformative potential of the protocol, stating, “We’re laying the groundwork for an economy run not just by people, but by software – autonomous, intelligent, and always on.”

The x402 protocol has garnered support from key industry players, including AWS (Amazon Web Services), stablecoin issuer Circle, AI company Anthropic, and blockchain platform Near Protocol. Gagan Mac, vice president of product management at Circle, praised x402 for simplifying real-time monetization and unlocking new use cases such as micropayments for AI agents and applications.

One of the key benefits of x402 is its ability to empower AI agents to achieve economic autonomy by enabling them to transact independently without human intervention. AI agents can utilize the protocol to access paid resources in real-time, provision and pay for hardware resources, access specialized data sources through micropayments, and engage in transactions with other AI systems.

Moreover, developers can leverage the x402 protocol to monetize APIs, create software unlocks, and offer metered services that charge users based on actual resource usage. Content creators can also benefit from the protocol by monetizing their content without the need for traditional subscription models or credit card fees.

In essence, Coinbase’s x402 protocol represents a significant step towards creating a more efficient and autonomous internet economy, where value can be seamlessly exchanged alongside data, facilitating a new

Source: https://cointelegraph.com/news/coinbase-x402-payments-protocol-make-ai-agents-more-autonomous?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound