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Cloudflare, Inc. and Coinbase have partnered to establish the x402 Foundation, aimed at accelerating the development of an open internet standard for digital payments. This initiative seeks to simplify the process of sending and receiving payments online for website owners, developers, and content creators globally, enabling seamless transactions regardless of geography, currency, or payment method.
Standardize the HTTP 402 "Payment Required" Response: Despite existing for decades, the HTTP 402 response has lacked standardization, limiting its adoption. The x402 Foundation aims to create a unified protocol to address this gap.
Enable Internet-Native Payments: The foundation will develop a flexible standard for communicating payment requests and responses, supporting diverse payment methods like credit cards and cryptocurrencies.
Support Emerging Technologies: The protocol will facilitate monetization of APIs, model context protocols, and agent-based systems, aligning with the next wave of internet innovation.
Overcome Traditional Payment Barriers: Current systems are complex, slow, and geographically restricted, hindering micropayments. The x402 standard will streamline transactions for scalability and efficiency.
The x402 protocol leverages the HTTP 402 "Payment Required" status code to embed payments directly into web interactions. Key features include:
Machine-to-Machine Transactions: Enables seamless agent-driven commerce, allowing AI agents, APIs, and apps to transact without accounts or subscriptions.
Deferred Payment Schemes: Cloudflare introduces a flexible settlement model for batch or subscription-based payments, ideal for crawlers and large-scale applications.
Use Cases: Supports pay-per-use AI models, on-demand data feeds, creator micropayments, and storage/compute services, fostering new business models.
Matthew Prince, Co-founder and CEO of Cloudflare: "Coinbase deserves great credit for initiating work on the x402 protocol, and we're excited to collaborate with them on our shared vision of a neutral foundation. The internet's core protocols have always been driven by independent governance. That's why we're proud to work with Coinbase to ensure x402 follows the same path, as it is likely to become a core protocol for agent-based trading."
Erik Reppel, Head of Engineering, Coinbase Developer Platform: "Coinbase has been working on internet payment standards since 2015, and now the technology is finally here. Agent trading is a unique opportunity to rethink how value is moved online. The x402 Foundation will help lay the groundwork for this."
The x402 Foundation aims to establish "internet-native currencies" by providing a standardized method for payment communication. This will empower:
Developers to monetize API access.
Content creators to charge for premium content.
Autonomous agents to conduct transactions without human intervention.
By removing geographic, currency, and formatting barriers, the x402 protocol positions itself as a cornerstone for agent-driven economies, transforming how value is exchanged online.
Organizations interested in joining the x402 Foundation can register at the provided link. The foundation encourages contributions from developers, businesses, AI platforms, and e-commerce entities to ensure transparent governance and interoperability.
Cloudflare, Inc. (NYSE: NET) is a leading connectivity cloud company dedicated to building a better internet. Its platform offers cloud-native products and developer tools to enhance speed, security, and efficiency for organizations worldwide. Powered by one of the largest interconnected networks, Cloudflare blocks billions of threats daily for clients ranging from global brands to small businesses and governments.
Coinbase Global, Inc. is a leading cryptocurrency exchange platform, specializing in crypto transactions, subscriptions, and services. With 83.2% of its net sales from the U.S., Coinbase drives innovation in the crypto-economy, supporting developers and businesses through its developer platform.
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