Core Insights - Cardano's co-founder Charles Hoskinson announced on Oct. 28 that a significant development is forthcoming, potentially linking the blockchain to AI-to-AI commerce [1] - The upgrade aims to facilitate micro-transactions for AI agents, which could transform web economics and introduce new business models [2] Upgrade Details - The x402 protocol revives the "402 Payment Required" HTTP status, allowing websites to request payments from users, which was previously underutilized [3][4] - Cardano's recent upgrade enables the settlement of these payment requests in its native coin and stablecoins, creating a framework for AI agents to transact with websites [4] - Initial proofs of concept demonstrate the functionality of the 402 code, involving a crypto wallet and on-chain settlement, although these are still in early stages [5] Future Implications - This upgrade positions Cardano to potentially capture value from AI-to-AI payments on the internet, although its practical utility remains to be seen [6][7] - Adoption of the new standard by third parties will be crucial for realizing the upgrade's benefits [7]

Payment Technology & Adoption - Agentic payments are gaining traction on Polygon through x402 and PayAI Network [1] - Transactions can be completed in under one second for as little as $0.001 [1] - PayAI Network supports x402 payments on Polygon [1] Key Features & Benefits - The system is universally compatible, simplifying integration [1] - No sign-ups or API keys are required, streamlining the payment process [1] - The platform is designed for agentic payments and micro-transactions [1]

Market Position - Sei has captured over 50% of the total gaming market [1] Industry Focus - Gaming represents a perfect value exchange sandbox with high-frequency economies, stable in-game micro-transactions, and instant settlement needs [1] - Sei is a frictionless settlement layer for financial use cases of all types [1]