Integrating the open-source payment protocol x402 with Etherlink, an EVM-compatible interface for the Tezos ecosystem, has been a significant development. Originally developed by Coinbase, a leading US-based cryptocurrency exchange and blockchain infrastructure company, the Etherlink implementation known as Tez402 was spearheaded by TZ APAC, an organization supporting the growth of the Tezos ecosystem in the Asia-Pacific region.
This integration enables developers to monetize their APIs by turning any Etherlink API into a paid endpoint that charges for each request. Payments are processed on-chain using stablecoins, eliminating the need for subscriptions, invoices, or third-party payment processors.
The x402 protocol is specifically designed for fast and cost-effective payments for digital services, offering a solution for situations where traditional payment systems fall short. By reviving the HTTP 402 “Payment Required” status code, servers can now request crypto payments directly through standard HTTP headers.
For the Etherlink release, TZ APAC enhanced the original Coinbase implementation by adding a facilitator and a Permit2 proxy. These additions enable payments with ERC-20 tokens while maintaining non-custodial transactions locked to a specific destination.
Developers now have the opportunity to monetize their APIs, SaaS services, and Web3 applications running on Etherlink through this integration. The x402 integration is currently live on the Etherlink mainnet, allowing developers to implement the payment method using the provided quick start guide or by connecting their own facilitator infrastructure.
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