Like the legendary 30x El Dorado Mastiff, what is the x402 Protocol?

By: blockbeats|2025/10/23 18:00:00
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Yesterday, a special Gold Dog was born on Base, and it's called $PING. Based on the cost of initial minting and the current coin price, a successful Mint results in approximately an 18x return.

Like the legendary 30x El Dorado Mastiff, what is the x402 Protocol?

The uniqueness of $PING lies in the fact that its minting process is reminiscent of the inscription from 2 years ago. The cost of minting $PING once is around $1, and if successful, you can receive 5000 $PING. The minting page for $PING is also similar to the inscription from that year, lacking an exquisite front-end interface, and appearing more hard-core.

This is the first token issued through the x402 protocol. So, what is the x402 protocol? Why is the minting process of $PING so special? And what is the current ecosystem of this protocol like?

What is the x402 Protocol?

x402 is an open payment protocol developed by Coinbase that allows AI agents to autonomously complete transactions.

The x402 protocol leverages the long-standing "HTTP 402 "Payment Required" status code to request payment to fulfill an API request or load a webpage. If an API request lacks payment information, x402 returns an HTTP 402 status code, prompting the client to pay and retry the request.

The workflow diagram below intuitively explains how the x402 protocol operates:

(Image Source: Jay Yu - Pantera Capital)

A user makes a request to Claude, "Use my Coinbase wallet to help me buy a pair of jeans on Amazon." Upon receiving the request, the AI initiates a purchase request to Amazon. Amazon then constructs an initial transaction, including the wallet address to be used, the chain to be used, the cryptocurrency, and the specific amount. Once the AI receives this, it sends the transaction to the x402 protocol validator to check if the wallet on the corresponding chain has sufficient assets, if the product is tradable, and if the user has confirmed authorization. Once everything is confirmed, the amount and payment proof are sent to the merchant's address. With that, the transaction is completed.

Overall, the HTTP 402 status code in the protocol serves as an "informational" role, indicating whether a transaction was successful. Coinbase, based on this status code, has added a feature to use blockchain for payments, creating the x402 protocol.

It may sound simple, but looking at the protocol flow above, there are two anticipated aspects. The first is further simplification of the on-chain asset channel for actual payments, eliminating the need for users to cash out into fiat currency before spending, allowing direct spending of assets like USDT, USDC, or other on-chain assets. However, the key to this is widespread adoption, with enough merchants supporting it.

Any Web API or content provider (crypto or Web2) looking to offer a low-cost, frictionless payment path for small or usage-based transactions can integrate x402.

The second aspect is the AI Agent. The AI Agent, acting as the payer/receiver, is well-suited for blockchain payments because unlike humans, AI Agents do not naturally have bank or payment app accounts through KYC. As the intelligence of AI Agents continues to grow, some novel consumption experiences or on-chain experiences are also worth looking forward to.

The workflow also explains why the minting process of $PING is likened to an inscription, as it needs confirmation from the x402 validator. During the minting process, a large number of minting requests not only bombarded the minting interface repeatedly but also provided the first real stress test for the x402 protocol.

Data from the past 30 days shows that the $PING interface has received over 150,000 x402 transactions, totaling approximately $140,000, leading by a landslide over the second-ranked Questflow

This is the first time the x402 protocol has been so lively and well-known in nearly half a year since its launch. Regardless of the chain or protocol, new asset issuance is always a hot topic in the crypto world.

x402 Ecosystem Overview

So, besides $PING, what other projects related to the x402 protocol are worth paying attention to?

The Ecosystem page on the x402 protocol's official website provides a summary of current projects. By checking out each project individually, it feels like this protocol is still in a fairly early stage of development. Many projects either directly lead to technical documentation or jump to the projects' GitHub repositories.

Here we summarize some existing token projects and upcoming launches.

Questflow

A multi-AI Agent work-ordering layer that enables multiple AI Agents to autonomously coordinate task execution. In July of this year, it was announced that they successfully raised a $6.5 million seed round led by cyber•Fund, with participation from Delphi Labs, Systemic Ventures, Eden Block, HashKey Capital, Animoca Brands, Tezos, among others. Additionally, they received grants from the Coinbase Developer Platform, Aptos, and Virtuals.

There is currently no official token, but in December of last year, they collaborated with Virtuals to launch $SANTA, an autonomous Agent cluster utilizing Questflow's QDP (Questflow Developer Platform) and MAOP (Multi-Agent Orchestration Protocol).

The current market value of $SANTA is approximately $4.5 million.

AurraCloud

An AI Agent infrastructure for crypto-native applications. It can immediately host AI Agents using an OpenAI-compatible API or an MCP server and achieve AI monetization through the on-chain x402 protocol on Base.

Additionally, earlier this month, the project also offered x402 validation services.

The $AURA token was launched through Virtuals and currently has a market value of approximately $1.6 million.

Meridian

Incubated by uOS, they provide cross-chain settlement and custody services based on the x402 protocol.

The $MRDN token currently has a market capitalization of approximately $1.5 million.

PayAI

Provides multi-chain x402 payment service support, including Solana, and also offers x402 verification services.

The $PAYAI token currently has a market capitalization of approximately $5 million.

Daydreams

Supports the LLM inference process for apps and AI Agents using x402. Additionally, it is building Lucid—an accessible platform for anyone to deploy Daydreams Agents to solve problems. Users can sign transactions with x402 to pay in USDC, and Agents can mutually pay for access.

The $dreams token currently has a market capitalization of approximately $6.7 million.

Gloria AI

A real-time news platform built for traders, creators, AI Agents, and automated systems, which can be accessed with $GLORIA via x402 payments.

The $GLORIA token currently has a market capitalization of approximately $1.65 million.

Kite AI

Kite AI is creating the foundation transaction layer for the "Agentic Internet," providing a unified identity, payment, and governance infrastructure for autonomous intelligent agents. Kite AI's work is closely related to x402, having referenced support for x402 as early as July and being arguably the only project within the x402 ecosystem that can be classified as part of the "chain."

On September 2nd, according to Fortune, Kite AI announced a total of $33 million in funding, with the latest Series A round amounting to $18 million. The round was led by PayPal Ventures and General Catalyst, with participation from 8VC, Samsung Next, SBI US Gateway Fund, Vertex Ventures, Hashed, HashKey Capital, Dispersion Capital, Alumni Ventures, Avalanche Foundation, GSR Markets, LayerZero, Animoca Brands, Essence VC, and Alchemy.

Kite AI has not yet launched its coin, but recently introduced the Kite Foundation X account, which clearly indicates that a coin launch is imminent. The only tradable asset currently available is the official FLY THE KITE NFT, with a floor price of 0.375 ETH.

Conclusion

In September of this year, Coinbase and Cloudflare announced the formation of the x402 Foundation to drive protocol development. While there are some similar competitors, such as h402 from bitGPT and EVMAuth from Radius, there is no doubt that x402 has the strongest background and highest level of attention.

If the market cap of $PING experiences a significant increase in the near future, x402 will attract more market attention. This is not only beneficial for meme coins but also for infrastructure projects.

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Debunking the AI Doomsday Myth: Why Establishment Inertia and the Software Wasteland Will Save Us

Original Title: Against Citrini7Original Author: John Loeber, ResearcherOriginal Translation: Ismay, BlockBeats


Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.


The following is the original content:


Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.


Never Underestimate "Institutional Inertia"


In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.


When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."


Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.


A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.


I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.


The Software Industry Has "Infinite Demand" for Labor


Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.


But everyone overlooks one thing: the current state of these software products is simply terrible.


I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.


From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.


Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.


I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.


This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.


Redemption of "Reindustrialization"


Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.


But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.


As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.


We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.


We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.


Towards Abundance


The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.


My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.


At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.


If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.


Source: Original Post Link


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