Terms to know:
HTTPS x402: An internet payment protocol that allows computers, AI Agents and apps to pay each other for goods and services.
API: a software messenger that allow two applications to speak to each other

The internet is a marvelous river of information that flows between people, databases and parts of the planet that I don’t even know exist. What makes the internet so enticing is the free nature in which information can travel, it doesn’t need a passport, or so we thought. Between censorship, paywalls and general segmentation of common interest , the internet can actually be quite siloed, not to mention ad netowrks and social media giants locking you into an algorithm . So how does a 30 year old internet protocol (HTTPS 402) provide a potential solution to the lack of online freedom and value, welcome center stage, x402.

Yesterday, Cloudflare announced its new programmable Web3 wallet service for the agentic internet through the x402 protocol.

What does that mean? The possible end of paywall fatigue and the emergence of Agent economies. At its core, its the notion that AI Agents using a digital wallet service like Cloudflare will be able to conduct transactions ( buy/sell) without having a human involved for the actual transfer; Agents get to go shopping! Agents become the most efficient taskmasters at finding items in a digital grocery store. It should be noted Cloudflare is not the only service doing this and wasn’t the first, in fact Coinbase was an early pioneer as well but Cloudflare is an industry standard and blue chip company from a tech standpoint.

Huh? AI Agents are now able to buy and sell services without you typing in a credit card number for every transaction. Agents can properly operate as your personal concierge and digital shopper.

Of course there will need to be guardrails set in place, like budget constraints but overall the adoption of x402 allows agents to explore the web more freely. Typically, if you were to send out your Agent to find information like a dataset , a recipe, sport metrics for your website, often times there is a paywall you would have to clear but now with a Web3 wallet/x402 you, a human, are no longer needed. Agents with access to funds via a digital wallet can automatically conduct transactions in order purchase what they were sent to find. Across the board there is a massive effort being made by companies and developers to incorporate Web 3 wallets into Agentic infrastructure due to the frictionless and agnostic way in which information through APIs can be delivered.

How does this work?
You create a digital wallet on Cloudflare and provide your AI Agent access. You add funds, typically via a crypto stable coin such as USDC to the wallet, set a budget for spend, assign a task and let your agent go to market. Alternatively, you could tell your AI Agent to ask as a liaison for yourself or company and sell a service. I believe by providing this financial freedom to AI agents they will better be able to extract the right information and provide a refined answer to our searches.

Instead of needing to open a browser, fill out a credit card form, subscribe and pay $20 a month to get access to 1,000 banana bread recipes, your agent could in theory be able to find and pay 0.25 cents for the one specific recipe by your favorite baker.

Here’s a potentially game changing idea…..think of going to a website and not seeing a single advertisement …x402 could allow for creators, writers and other web artists to get paid via digital wallet transactions that pay for time spent on page or allowing Agents to web scrape and train on their content. X402 enables independent developers and creators to directly monetize content, APIs, and tools at scale—free from reliance on centralized platforms or ad networks


What does this mean ?

It means that a new financial nervous system is coming into the fold. Similar to the transition from cash to credit cards, from renting DVDs to streaming online, x402 and digital wallets allow for a seamless flow of value across the internet and that is exciting. This new agentic process in which value can transfer across the world, that was not possible before stable coins and x402, could sway us towards an environment in which the internet isn’t as siloed. Will there be growing pains, absolutely. Could not setting a budget constraint on your AI Agent lead to some very fiscally irresponsible decisions, most likely but whenever a new method emerges that changes the flow of a river like the internet its worth noticing.

Goodluck, have fun

Ian

I’ve worked in finance, films, restaurants, and Web3. I am chronically online, I love to sleuth and I love the NYT crossword.

I couldn’t read properly until the 2nd grade and even then I struggled with long sentences and needed books with pictures to guide me but what I could read were statistics and long Russian and Czech names of NHL players. It got to the point where I could memorize an entire teams roster, how many goals they scored and their shooting percentage, this was all when I was 6 years old.

From an early age I admired numbers, I liked the way they told stories that words couldn’t and it led me to a path in life of looking for metrics that told us where we were going. Whether it was tracking a team’s win/loss projection for a season, deciding which new electric vehicle stock to invest in based on where their startup funds came from or buying a cryptocurrency like Bitcoin in 2014 which has become mainstay in financial markets, I let numbers tell the story and assess trends from those narratives.

I’m starting this Substack because in short, I love talking about the topics I will cover and I aim to provide a “casual” take to where things are going. Also because my Mom has pestered me more times than I can count to “ get out there and share your knowledge!”, so if your reading this Mom, you’re welcome.

I am not writer, I never took advanced calculus , I often times drag on but I can promise you that my internal compass on trends over the past two decades have been spot on and I will prove that to you throughout my posts.

Question me, comment on horrible takes, make suggestions! I only get better at this if I’m held accountable.

Get ready for a wave of variety posts, topics to come might include:
- Why the MLB will have a lock out year in 2027-2028
- What does the future of AI/Compute Stocks look like?
- What is a Data Center and why is one being built by my house?
- What does the Crypto Clarity Act mean for Bitcoin?
- Should I let Claude have access to the Gmail?

For those who have stayed this long to read, Misinput is my personal brand that revolves around the idea that life is a series of “misinputs” that we are lucky enough to turn into lessons. My misinputs have provided me entry points for some of the best decisions I’ve ever made—the digital equivalent of a “happy accident.”

I’ve been told consistency is key …..so as a sign off

GLHF ( Goodluck have fun!)

-Ian