x402 is a new standard that allows any API call to become a micro-transaction. For example, every button click on the web can now be a paid action.
This isn’t entirely new—blockchains offer similar features—but x402’s main advantage is https compatibility, making the entire web "payment-friendly".

• API Sellers:
  This group includes both direct API providers and third-party marketplaces. They are incentivized to make their APIs x402-compatible to increase revenue and reach a larger customer base.

• API Buyers:
  Primarily AI agents with wallets. Stimulating demand at this stage remains challenging, as genuine user demand is close to zero and most transactions are spam.

• Facilitators:
  These entities operate similarly to Visa or MasterCard, but with minimal barriers to entry. Major tech companies like Cloudflare or Google can easily establish their own facilitators for blockchains such as Solana or Base.

• Chain & Token:
  Coinbase, the Base network, and USDC serve as the core platforms for x402. Competing blockchains and stablecoins are striving for x402 integration to boost on-chain economic activity. Those who control the chain, token, or wallet stand to benefit the most.

The greatest value accrual is enjoyed by those who control the infrastructure, wallets, and distribution interfaces (such as browsers, apps, and marketplaces).

End users will begin using x402 once AI applications (like ChatGPT) add direct payment capability (instant checkout). The biggest competitor to x402 is Stripe, which is rolling out its own Agentic Commerce Protocol using established card payment rails.

On networks like Solana or Base, true micro-payments remain inefficient due to transaction fees. To address this, solutions such as sidechains, appchains, or dedicated payment lanes for micro-transactions are needed.

x402 enables the creation of "resource marketplaces," allowing for dynamic pricing of data, compute, or services. In this world, AI agents could automatically negotiate, pay, and coordinate across supply chain stages.

• x402 is expected to become the native payment standard for web, crypto, and AI agent ecosystems.

• Yet, most x402 tokens today are just pump and dump purpose without real underlying value.

• Coinbase is strongly pushing the standard because it owns the full stack: facilitator, chain, token, and wallet.

Those who control the critical distribution interfaces and underlying assets (chain, token, wallet) will capture the most value from the x402 ecosystem. Coinbase is currently leading with their integrated end-to-end solution.

I feel optimistic about x402’s long-term potential, despite short-term hype and adoption challenges. This standard could fundamentally transform how internet payments work.

Real products that implement useful x402 APIs will prove their value over time as they gain more consumers.

If you’re interested in investing or researching deeper, x402 and the future of API-based web, blockchain, and AI payments are areas worth exploring!

x402 is a new standard that allows any API call to become a micro-transaction. For example, every button click on the web can now be a paid action.
This isn’t entirely new—blockchains offer similar features—but x402’s main advantage is https compatibility, making the entire web "payment-friendly".

• API Sellers:
  This group includes both direct API providers and third-party marketplaces. They are incentivized to make their APIs x402-compatible to increase revenue and reach a larger customer base.

• API Buyers:
  Primarily AI agents with wallets. Stimulating demand at this stage remains challenging, as genuine user demand is close to zero and most transactions are spam.

• Facilitators:
  These entities operate similarly to Visa or MasterCard, but with minimal barriers to entry. Major tech companies like Cloudflare or Google can easily establish their own facilitators for blockchains such as Solana or Base.

• Chain & Token:
  Coinbase, the Base network, and USDC serve as the core platforms for x402. Competing blockchains and stablecoins are striving for x402 integration to boost on-chain economic activity. Those who control the chain, token, or wallet stand to benefit the most.

The greatest value accrual is enjoyed by those who control the infrastructure, wallets, and distribution interfaces (such as browsers, apps, and marketplaces).

End users will begin using x402 once AI applications (like ChatGPT) add direct payment capability (instant checkout). The biggest competitor to x402 is Stripe, which is rolling out its own Agentic Commerce Protocol using established card payment rails.

On networks like Solana or Base, true micro-payments remain inefficient due to transaction fees. To address this, solutions such as sidechains, appchains, or dedicated payment lanes for micro-transactions are needed.

x402 enables the creation of "resource marketplaces," allowing for dynamic pricing of data, compute, or services. In this world, AI agents could automatically negotiate, pay, and coordinate across supply chain stages.

• x402 is expected to become the native payment standard for web, crypto, and AI agent ecosystems.

• Yet, most x402 tokens today are just pump and dump purpose without real underlying value.

• Coinbase is strongly pushing the standard because it owns the full stack: facilitator, chain, token, and wallet.

Those who control the critical distribution interfaces and underlying assets (chain, token, wallet) will capture the most value from the x402 ecosystem. Coinbase is currently leading with their integrated end-to-end solution.

I feel optimistic about x402’s long-term potential, despite short-term hype and adoption challenges. This standard could fundamentally transform how internet payments work.

Real products that implement useful x402 APIs will prove their value over time as they gain more consumers.

If you’re interested in investing or researching deeper, x402 and the future of API-based web, blockchain, and AI payments are areas worth exploring!