Definition
On-Chain Settlement
The process of recording and finalizing a payment transaction on a blockchain, providing immutable proof of payment.
On-chain settlement means a payment is recorded directly on a blockchain — not in a database controlled by a single company, but on a decentralized, public ledger. When a Mithril agent makes an x402 payment, the USDC transfer is settled on-chain (Base, Polygon, etc.), giving both parties an immutable, verifiable receipt. Settlement times vary by chain: Base and Polygon settle in seconds, Ethereum in minutes. On-chain settlement eliminates payment disputes, chargebacks, and the need for trusted intermediaries.
Related terms
USDC
A US dollar-pegged stablecoin issued by Circle, used as the payment currency for all Mithril transactions.
x402 Protocol
An open payment protocol that uses HTTP 402 Payment Required to enable pay-per-call API transactions for AI agents.
Agent Wallet
A blockchain wallet assigned to an AI agent, managed by Mithril, with configurable spending limits and controls.
Base
A Layer 2 blockchain built on Ethereum by Coinbase, offering low fees and fast settlement — the default chain for Mithril payments.