In accordance with Jinse, the x402 protocol is a new HTTP-compatible payment standard designed to enable micro-payments for internet services. It leverages the HTTP 402 status code, originally reserved for micro-transactions, to facilitate on-chain, gas-free payments. The protocol allows users to pay for individual content pieces, API calls, or AI interactions using stablecoins like USDC, without the need for pre-funded credit accounts or complex billing systems. The article explores how current internet pricing models—such as subscriptions and ad-based revenue—are ill-suited for machine-driven traffic and AI agents, and how x402 can align pricing with actual usage. It also highlights how platforms like Substack and SaaS providers could benefit from integrating x402 to offer flexible, usage-based pricing.
x402 Protocol Aims to Revolutionize Internet Pricing with Micro-Payments
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