Machine-to-Machine Transactions
Automated digital asset exchanges between systems without human intervention.
What is Machine-to-Machine Transactions?
Machine-to-machine (M2M) transactions, facilitated by the x402 protocol, allow automated systems, such as AI agents or bots, to exchange digital assets for resources over the web. Unlike human-driven payments (e.g., entering credit card details), M2M transactions use standardized HTTP 402 responses to negotiate and settle payments programmatically. Examples include an AI agent paying for real-time data feeds or a crawler paying per page accessed, enabling efficient, scalable digital asset exchanges.
Related Terms
Liquidity Pool (Perp Dex)
A pool of digital assets provided by users to facilitate trading on a Perp DEX.
CLOB (Central Limit Order Book)
A trading mechanism that matches buy and sell orders for assets based on price-time priority, commonly used in both traditional and decentralized exchanges.
Gas Cost Complexity
The variable and cumulative transaction fees on blockchains that complicate liquidity provision and trading in DeFi.
Fed (Federal Reserve System)
The central banking system of the United States, established in 1913 to provide a safe, flexible, and stable monetary and financial system.
Arbitrage
The practice of buying a digital asset on one exchange and selling it on another to profit from price differences.
EIP-1559
An Ethereum upgrade that introduced a dynamic base fee for transactions, implemented in August 2021.