What is x402 and why is it a positive development for Cardano?
Charles Hoskinson, a co-founder of Cardano, expressed his excitement about the launch of x402, emphasizing its significance for the network. He believes that this new payment standard marks a notable advancement in technology in recent times. The introduction of the x402 format coincided with the release of the first meme coin on the Masumi network, showcasing the potential for this update to revolutionize blockchain automation and AI transactions.
The x402 format draws its inspiration from the HTTP 402 status code, which denotes “payment required.” It provides a streamlined method to pay for access to resources directly through an API without the need for registration, OAuth, or complex authorization processes. Originally conceptualized by the Coinbase team, the x402 format was later incorporated into the Google (AP2) payment protocol. This integration aimed to simplify verifiable settlements between AI agents and online services, facilitating real-time automation of on-chain transactions.
For Cardano, the adoption of the x402 standard paves the way for transforming the blockchain into a robust financial infrastructure for the AI economy. This innovation enables scalable micropayments to occur without the necessity of trust or intermediaries, ensuring efficiency and transparency in transactions across the network.
The launch of x402 offers a vision of a future where dApp applications can seamlessly leverage this payment protocol for automated payment scenarios. The demonstration illustrates the step-by-step functioning of the payment system, showcasing how users can access closed features, such as meme coin listings, after completing a transaction verified on the blockchain.
Developer Patrick Tobler and his team are actively engaged in formalizing the x402 standard for both the Cardano and Masumi networks. Plans are underway for the direct integration of x402 with smart contracts on the Masumi network, underscoring a shift towards a more flexible and robust payment architecture.
Analysts view the emergence of x402 as a significant catalyst for the Cardano ecosystem. In its initial week, the protocol processed nearly 500,000 transactions and has garnered interest from industry giants like Google, AWS, and Visa. This technological progress has instilled optimism among experts regarding the future growth of ADA, with predictions suggesting a rise to $1.20 by early 2026.
