x402 is working. That's actually the problem ➢ Payments are live. In the last 24H, x402 processed $3M+ transactions onchain ➢ Every second protocol out there is trying to ride the x402 wave by mentioning it ChatGPT's instant checkout went live in September. The technical problem is solved. That's why the real problems are now visible🧵 ➠ Can agents actually shop? No. An agent can send money but can't evaluate what to buy. API discovery tools exist for devs. OpenAPI standards document endpoints. But no system lets an agent: ‣ Scan available services autonomously ‣ Compare pricing and reliability data in realtime ‣ Make vendor selections without human configuration ➠ What happens when payments fail? The system breaks down at intent, not execution. Over half of merchants use AI fraud detection. Smart contract dispute clauses exist. But none of this solves the core problem. When an agent misinterprets what you wanted and buys the wrong thing, who pays is the concern. You authorized the agent, not necessarily the specific transaction it chose. It's not fraud. It's not merchant error. It's intent confusion. Remember there are no rules that work for agentic transactions. No automated system can decide whether the agent correctly understand what the human wanted. ➠ Is fraud actually concerning? Yes, measurably. Fraud detection doesn't work for agents. An agent making 1,000 transactions/hour isn't suspicious, it's normal. Geographic signals mean nothing when agents have no location. Consumers can say "I didn't authorize that, my agent did." Liability is unclear across the entire chain. We also don't know who's liable when agents mess up. Frameworks are being written. None are law. Nobody wants to be the test case, which slows commercial adoption. @eigenlayer will play a big role in the verification part here. But it will need some external help in tackling frauds. ‣ x402 → payments ‣ AP2 → agent protocol ‣ EigenCloud → verification ➠ Where does money actually get made? Not on payment rails. Those will be free or close to it. The money is in solving problems the protocol creates. New protocols can target these sectors: ➢ Fraud prevention at agent scale ➢ Dispute resolution that works in seconds/minutes ➢ Treasury management for thousands of micropayments daily We will need reputation scores + regular audits. No machine speed reputation system exists where agents evaluate vendor trustworthiness at transaction speed is there as of now. The other revenue source is accumulated intelligence. An agent managing your finances for two years knows spending patterns competitors can't quickly replicate. This is where ZK, privacy projects will be crucial moving forward. ➠ Conclusion Note that realtime failure detection is becoming a regulatory expectation. Agents without failure detection guardrails will likely face pushback. Systems get built fast, fixed slowly. Payment infra has arrived. Fraud reasons are immense. Disputes are confusing. Legal frameworks are incomplete. And adoption continues anyway because economic incentives are too strong to wait. So next time you see a protocol saying that they've integrated x402, these are the questions you'll have to ask them instead of blindly hyping th protocol. X402 proved agents can pay. Now we're finding out what happens when they do.

For those who doesn't know what x402 is. This will be helpful👇

What are your thoughts on problems ahead for x402 guys? @hmalviya9 @snow949494 @belizardd @Hercules_Defi @DefiIgnas @Slappjakke @kenodnb @DeFiMinty @thelearningpill @TrycVerrse @Defi_Warhol @Louround_ @TheDeFiPlug @eli5_defi @0xAndrewMoh @DeRonin_ @0xTindorr @arndxt_xo @poopmandefi @0xCheeezzyyyy @Mars_DeFi @splinter0n @zerokn0wledge_ @satyaki44 @0xTanishaa @bullish_bunt @cryptorinweb3 @TheDeFiKenshin @DukeD_Defi