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The end of ads: Coinbase engineer says AI agents could kill the internet’s favorite business model

CoinDesk
Coinbase engineer Erik Reppel suggests AI agents will disrupt the internet's ad-based economy, favoring native digital micropayments instead.

Summary

Erik Reppel, an engineering head at Coinbase and creator of the x402 protocol, argues that the rise of AI agents is threatening the traditional internet advertising model. Because AI agents do not view or engage with advertisements, their prevalence forces a transition toward alternative monetization strategies. Reppel proposes that the future of web commerce lies in native digital payments, specifically leveraging stablecoin-powered micropayments for content and API access. His x402 protocol utilizes the HTTP 402 “Payment Required” status code to enable autonomous agents to pay for services, positioning this “agentic economy” as a significant market opportunity.

(Source:CoinDesk)