Coinbase has revived the HTTP 402 payment status code with a new open-source protocol called x402, which integrates stablecoin payments directly into websites and APIs. This code, which originally indicated 'Payment Required,' allows for payment without user registration, emails, or complicated signatures, simplifying crypto transactions on the web. It targets both human users and AI agents by facilitating easier payment processing. The x402 protocol broadcasts payment requests to a blockchain after verifying the signature, ensuring security against replay attacks. Coinbase asserts that this model reduces friction associated with account and billing, potentially offering a pay-per-use model without traditional barriers like subscriptions. While the protocol offers innovative features, concerns about user experience arise, particularly if users lack compatible wallets or funds. Coinbase aims to create an open standard for agentic finance by inviting community contributions to further develop x402. This initiative represents a significant step in making crypto payments more accessible and integrating them into broader internet experiences.

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