Tiger Research: x402 protocol aims to grant AI agents payment authority

The x402 protocol represents a new attempt to grant artificial intelligence agents payment authority via the blockchain, according to a report from Asian Web3 research and consulting firm Tiger Research. The report notes that in the current internet environment, AI agents lack the power to make autonomous payments without human approval. The protocol aims to solve this issue, potentially shifting the primary consumer on the internet from humans to machines. Unlike traditional payment systems, x402 eliminates the need for intermediaries such as banks and card companies, allowing AI to execute payments directly through server verification. While initially proposed by Coinbase, the largest U.S. cryptocurrency exchange, the protocol is now being jointly developed by several firms and the x402 Foundation. The report suggests that if x402 becomes a common standard for AI payments, an internet ecosystem where AI can handle its own transactions is a realizable future.