Bankless x402: The Key to Internet Money, Micropayments & The AI Agent Economy | Sam Ragsdale
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Nov 5, 2025 
In this engaging discussion, Sam Ragsdale, CEO of Merit Systems and innovator behind x402, dives into the transformative potential of crypto micropayments. He reveals how x402 revives the long-dormant "Payment Required" status code to allow seamless transactions for AI agents and humans alike. Discover how this protocol could change everything from online business models to autonomous commerce. Sam also shares insights on privacy, the evolution of transaction flows, and the opportunities for developers to reshape the internet monetization landscape.
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Why HTTP 402 Was Reserved
- HTTP reserved 402 for payments because creators expected servers to charge for resources.
- Micropayments didn't exist then, so 402 stayed unused until crypto enabled them.
How X402 Enables On‑Chain Payments
- X402 servers reply with 402 and a schema describing cost and accepted crypto.
- Clients sign a one-time crypto transfer and include it in the request header to unlock the resource.
Public Stablecoins Solve Chargebacks
- X402 payments use stablecoin transfers on-chain and are public and non‑shielded.
- One-time signatures prevent replay and stablecoins remove chargeback risk for providers.