My 2 cents on x402:
- It is just a communication standard set to streamline the services to opt into crypto as the payment rail instead of credit card system. Without it, you can still just do it via P2P standard to inform of your wallet address as a vendor, and receive the payments, then settle the services.
- The response code can be 402, can be 200 but with a metadata describing the next step to pay, could be anything, but the idea is to ask for service, respond with the price tag, and pay the price, then you get your service. If you swapped the blockchain part with just sth like a random
@WechatPay,
@PayPal, the user experience will still be the same.
- Business in the states who usually have a complete business, credit card, KYB setup, with users all have access to credit cards won't have much upsides to x402,
@stripe is already their fav platform, unless stablecoin adoption in the states becomes mainstream.
- Business who has interests in launching their own stablecoin to farm T-bills, so that their payments operations suddenly becomes a for-profit product. (insights from yesterday's
@WPReadingClub event)
- Business that operates in less financial infra established markets could really benefits from this as onboarding as a service vendor that accepts crypto payments is literally PERMISSIONLESS, and anybody with a cellphone and internect could open up a payment wallet to start using the services.
- Payments on x402 has no transaction fee needed but only some small gas fee regardless of the transaction amount. Unlike visa, mastercard, amex who charges from 2.5-3%.
- x402 with Agents is an amazing upside, but it comes with preconditions, we are still 2 steps away:
1. step one is to have good and reliable agents who can actually do trades that won't hallucinate, predictable, and has a boundry/policy mechanism set for bounding behaviors.
2. step two is to have actual communication and trades between the agents
3. x402 will then become actual usable protocol for the A2A usecases.
- The customizability of facilitators could open up web2 like payment experience that was not possible before on web3. It's all because of the "signed intent" that facilitators can settle onchain when they want to. It's like a check sent out waiting to be claimed. so when to upload the intent(from immediately all the way to couple days for security garantee), how they upload the intent(single or batched?), which ones to upload?(censorship ability if thats part of their business requirement), and more.
One thing that's inevitably going to happen is more people are going to use crypto as the payment rails for its efficiency compare to everything else out there. The only problem is the onboarding atm, which is growing at an unstoppable rate.
So don't sleep on x402, go build infra for it, build services on top of it, create modular monetized internet on top of it.
g402