The x402 protocol is set to transform internet pricing by enabling micro-payments for online services. Utilizing the HTTP 402 status code, this new standard facilitates on-chain, gas-free payments using stablecoins like USDC. This approach allows users to pay for specific content, API calls, or AI interactions without needing pre-funded accounts or complex billing systems.
The protocol addresses the limitations of current internet pricing models, such as subscriptions and ad-based revenue, which are not well-suited for machine-driven traffic and AI agents. By aligning costs with actual usage, x402 offers a more flexible pricing model. Platforms like Substack and SaaS providers could leverage this system to implement usage-based pricing, enhancing their service offerings.
x402 Protocol Introduces Micro-Payments for Internet Services
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