Congratulations! You've experienced (theoretically) paywall fraud.

What is Paywall Fraud?

You just experienced a simulated "paywall fraud" attack.
You paid USDC on Sepolia testnet (it's not real money) to access premium content, and did not receive the content you were expecting.

Why is this a problem?

This is a problem because it will discourage people from trusting x402 micropayments or make client implementations only trust a limited number of facilitators.

Individual facilitators will need to implement their own fraud prevention solutions to protect users from fraud. As facilitators compete to offer the most secure solutions, the most effective anti-fraud facilitators will gain dominant market positions, forming a natural centralization of the x402 protocol. This centralization will grant a few facilitators the majority of market share. Over time, these select few facilitators will be able to determine the direction of the protocol and limit access for others. This centralization has already started to happen with the currently registered facilitators forming a Pareto distribution of supported facilitators.

Contribute to the solution of Paywall Fraud

Preventing paywall fraud should be solved in a standardized way:

View x402 Issue #508

How did my browsing history end up onchain?

All transactions are published onchain publicly by default.

Your wallet address and x402 payments to registered recipients can be tracked. When you pay for content, your wallet address becomes linked to that content through public transaction data visible on blockchain explorers. For example, you can view all payments for this page on the Base Sepolia Explorer.

Why is this a problem?

Each transaction reveals which wallet viewed the page, when they viewed it, and how often they visited the page.

Onchain transactions linked to a wallet address can be used to build economic profiles based on content the owner is willing to pay for. Now everyone can see that edgy site you visited, not just Google. Additionally, scammers can identify visitors to known scam sites as potential targets and airdrop advertisement NFTs to their wallet to trick them into visiting more scam sites.

Contribute to the solution of Privacy by Default

We need to solve this problem by adding privacy by default to the x402 payment protocol:

View x402 Issue #406

Here's the "Premium Content" You Paid For

You wanted premium video content... here it is:

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