x402 The most crucial piece of the puzzle? Switchboard aims to rebuild the "oracle layer" from scratch

The major infrastructure of the x402 track is still a blank slate. Although the big market trend has taken away the "timing," causing application layer projects like Launchpad and middleware like Facilitator to temporarily quiet down, it has given the underlying infrastructure layer a longer window to build. Switchboard, as an oracle project emerging from the Solana ecosystem, has recently proposed to provide a data service layer for the x402 protocol. How exactly will this be done?

1) In terms of technical architecture, Switchboard adopts a TEE (Trusted Execution Environment), which is different from the traditional consensus models of Chainlink, Pyth, etc., that rely on network verification. Here, data is transmitted directly on-chain from a secure enclave.

2) In terms of protocol compatibility, Switchboard is compatible with the x402 protocol standard, allowing AI Agents to directly initiate data requests via HTTP 402, complete authorization with small on-chain payments, and receive data instantly. The entire process requires no extra adaptation layer or intermediary contracts.

3) Regarding the billing model, it breaks the traditional subscription-based model of oracles and supports pay-per-call—Agents pay per invocation or per data point, paying exactly for what they use. This is fully aligned with the x402 protocol's pay-as-you-go design philosophy.

4) Even more radically, Switchboard has completely removed the API Key mechanism. In the traditional model, accessing data services requires registration, key application, and permission management—a process that creates significant friction for Agents. Now, as long as the user's 402 transaction request carries sufficient funds, they can instantly access any data source, with no registration or approval needed.

This raises a question: does the x402 protocol need a dedicated oracle service layer?

First, let's clarify a concept. In the x402 protocol architecture, the Facilitator is responsible for payment facilitation—paying on behalf, broadcasting transactions, and state verification, essentially solving the problem of "how money flows." The API services actually called by the Agent—whether fetching prices, performing computations, or invoking LLM inference—are provided by the Provider layer.

What Switchboard aims to do is to be a special kind of Provider: one that specializes in providing on-chain trusted data services, constructing the core information layer for Agent value transfer.

Imagine if the Provider is a centralized API—what happens if data is tampered with or the service goes down? In Web2 scenarios, these risks are covered by channel brands and legal contracts, but in on-chain execution environments, especially those involving complex DeFi operations, verifiable and on-chain attested data is needed.

If ERC-8004 solves the problem of buyer Agent identity trust and reputation, then this type of oracle-driven Provider is meant to provide a layer of trust assurance for seller (API) data verification.

Essentially, the x402 protocol builds the payment layer for the Agent service marketplace, while Switchboard builds the data service layer. If the payment layer enables the flow of money, the data service layer enables the flow of trusted data.

Only when these two are combined does the Agentic Economy have a complete infrastructure.