HTTP 402 Payment / x402 Protocol
A standardized HTTP response code and protocol for requesting and processing digital asset payments.
What is HTTP 402 Payment / x402 Protocol?
The x402 Protocol leverages the HTTP 402 “Payment Required” status code to enable programmatic digital asset transactions between clients and servers. When a client attempts to access a gated resource, the server responds with a 402 status, including payment instructions such as amount and recipient. The client then re-requests the resource with a payment authorization header, and upon verification by a payment facilitator, the server delivers the resource. This protocol, authored by Coinbase, supports use cases like micropayments for AI agents or real-time data feeds, enhancing web monetization.
Related Terms
Paper Hands
Traders or investors who sell their digital assets quickly at the first sign of market volatility or negative news, reflecting low risk tolerance.
Implied Volatility
Market's expected annualized price fluctuation of an asset, derived from option prices.
Cross Margin
Margin shared across all positions in a trader’s account to cover losses.
Circle
The company behind USDC, focused on building transparent and compliant digital asset solutions.
Current Mid-market Price
The midpoint between the highest bid and lowest ask prices in the order book.
Bids (buy orders)
Orders from buyers indicating the price and quantity they are willing to pay for a digital asset.