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This week's been another round of all-time highs for x402, with all metrics (transactions, volume, buyers, sellers) expanding rapidly as the new protocol gains excitement.
Granted, much of these stats are likely inflated by the wave of "x402" tokens which have swept across onchain in recent days, a trend I'd highly suggest fading — except for maybe Daydreams (though, I don't hold any.)
As these tokens make their rounds, it feels quite fitting to continue our discussion of x402 in a more skeptical light to bring it back down to earth, looking at where the protocol's issues arise currently and what needs to be fixed.
All this is to say that, despite all the excitement, x402 still has a long way to go to achieve its full potential.
Its upcoming V2 will be a meaningful step in that direction.
The V2 Fix: Six Core Upgrades
Currently in proposal stage with its scope being assembled on Github, V2 looks to rebuild the foundation through six targeted improvements:
- Clearer Layers — V2 establishes clean boundaries between three distinct layers of x402. The specification defines the core protocol for payment signaling, consent, and settlement — the universal rules for how payments get requested and completed. The facilitator is an optional service that handles all the blockchain elements for sellers so they don't need to set up or manage the tools themselves. The SDK provides reference implementation tools for developers building clients and servers. In V2, details about what you're paying for (like web addresses and file types) are now separated from the actual payment instructions. This keeps each piece focused on its job — payment rules stay simple, verification happens cleanly, and developers get clear tools to work with — making the whole system easier to understand and use.
- Easier Growth — To allow x402 to scale smoother, networks now use a universal naming style covering blockchains like
Ethereum or Solana, plus everyday options like dollars or bank transfers. This lets developers mix in new chains or payment styles on the fly, making the whole setup more adaptable for testing ideas without starting from scratch. - Web-Friendly — In V2, technical details about data formats get moved out of the core payment flow into optional add-ons. This aligns everything with how the web already runs, cutting down on weird errors and making integrations smoother for apps and sites.
- Smarter Discovery — A new add-ons section would let servers advertise optional capabilities beyond basic payments. One key example: sign-in methods that let users prove they already paid without paying again. This includes wallet-based authentication across different blockchains and even non-blockchain sign-in options. Instead of confirming each small payment separately (like swiping a credit card ten times for ten oranges), users authenticate once and get immediate access. The add-ons capture lessons from real-world testing, helping services recognize each other's features and keep payment details current.
- Better Client-Server Chat — Payment replies now clearly note which option was picked, tying into the add-ons for things like the quick wallet-based logins mentioned above. This opens up friendlier back-and-forth between servers and users, like proving you've already paid to skip the line, for a less clunky experience.
- No Breaking Changes — The version number jumps to 2 to signal new features, but all v1 code continues working in its own namespace. Old integrations run unchanged while new ones can adopt V2 features gradually, making upgrades feel safe rather than risky.
David Christopher Sep 26, 2025 • 4 min read
Why This Matters
The x402 hype is real, but the protocol isn't ready for prime time yet.
V2 will address the core technical friction holding it back: messy architecture that makes adding new features painful, web compatibility issues causing integration headaches, and clunky network interactions that frustrate users.
These aren't small problems. They're the difference between x402 being a brief curiosity and becoming infrastructure that actually lasts, especially as competition heats up and competitors — (like Stripe’s ACP) — launch.
For those riding the wave, that's the context worth keeping in mind. Numbers for usage are certainly inflated today and the real test will come when V2 launches and we see if the protocol can evolve beyond its initial limitations.
Until then, temper the hype with a dose of reality: x402's potential is massive, but it still has work to do.
