Definition
API Key
A secret credential used to authenticate with an API service — the traditional model that x402 aims to replace for agent-to-service interactions.
An API key is a unique identifier used to authenticate requests to an API. Traditionally, developers sign up for a service, generate an API key, and include it in request headers. This model has problems for AI agents: keys must be pre-provisioned by humans, each service requires its own key, and keys grant unlimited access within rate limits (no per-call billing). The x402 protocol replaces API keys with payment-as-authentication: any agent with funds can call any x402 service without pre-registration. Mithril still uses an API key for its own management API, but the services in the catalog are accessed via x402.
Related terms
x402 Protocol
An open payment protocol that uses HTTP 402 Payment Required to enable pay-per-call API transactions for AI agents.
Pay-Per-Call
A pricing model where each individual API call is billed as a separate micro-transaction, rather than through subscriptions or rate-limited tiers.
SKILL.md
A markdown file that teaches AI agents how to interact with an API — including authentication, endpoints, and payment handling.