Coinbase has introduced x402, a new open protocol that utilizes the previously dormant HTTP 402 status code to facilitate direct payments using stablecoins like USDC for APIs and apps. This protocol allows for seamless, native digital payments over HTTP, revitalizing a core aspect of internet infrastructure originally meant for payments but unused for decades. The process involves a client requesting a resource, receiving a 402 response with payment details, and executing payment programmatically via a crypto wallet, enabling machine-to-machine transactions without user intervention. This innovation addresses the shortcomings of traditional payment systems, which are built for human interactions and often involve high fees, slow settlement, and cumbersome processes. X402 supports real-time, automated transactions and micropayments, making it essential for an increasingly machine-driven economy where AI agents require fast access to services. By integrating this payment layer, Coinbase aims to empower decentralized commerce and autonomous digital operations, marking a pivotal development in the evolving landscape of online transactions.

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