Coinbase has revived the once-dormant HTTP 402 payment status code with its new open-source protocol, x402, designed to integrate stablecoin payments directly into websites and APIs. This protocol offers a streamlined payment solution that enables transactions without the need for user registration or complex signatures. Users can authorize stablecoin payments, and once verified, transactions are broadcast to a blockchain, granting access to requested content or APIs. While x402 shows promise for improving payment processes and accommodating AI agents previously unable to handle conventional payment systems, experts have pointed out potential challenges regarding user experience and compatibility issues. Developers looking to implement x402 will need to address these challenges to ensure seamless payment interactions. Coinbase aims to decentralize the roadmap for x402, encouraging community contributions to foster an open standard for agentic finance and enhance the integration of crypto within digital transactions.

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