Introduction
Mind Network has announced the launch of the x402z Testnet, a confidential Agent-to-Agent (A2A) payment solution that promises to shield AI agents from public ledger exposure. The platform leverages Fully Homomorphic Encryption (FHE) and the ERC-7984 Confidential Token standard to keep transaction amounts, balances and intent hidden while preserving on-chain verification.
At a Glance
- Mind Network launches x402z Testnet on January 20, 2026.
- The solution uses FHE and ERC-7984 to encrypt payment data.
- It targets AI agents that require privacy for strategic operations.
- Why it matters: It offers a new way for autonomous agents to transact on public chains without revealing sensitive economic signals.
What is x402z?
x402z is described as the first infrastructure designed to resolve the conflict between on-chain transparency and the strategic needs of AI agents. It allows agents to pay for compute, data, and APIs on-chain while keeping amounts, balances and intent confidential.
Technology Foundations
- Fully Homomorphic Encryption (FHE): Enables computations on encrypted data without decrypting it.
- ERC-7984 Confidential Token standard: Provides a token format that supports confidential transfers.
- Zero Trust protocol HTTPZ: Mind Network’s own protocol that adds an extra layer of security for web and e-commerce interactions.
These technologies work together so that validators can confirm the correctness of a transaction without ever accessing the underlying numbers. The ledger remains authoritative, but sensitive economic signals stay private.
Why Privacy Matters for AI Agents
AI agents do more than transact; they reason, plan, arbitrate, and adapt. Exposing their payment flows, cost structures, and purchasing intent on a public ledger undermines their ability to act as independent economic actors. In competitive environments, visibility is not neutrality; it is leakage, a disadvantage, and irresponsible.
> “For AI to act freely, its computations must remain its own. Fully Homomorphic Encryption gives machines the right to think and transact without exposure,” said Rand Hindi, CEO of Zama.
> “In the early web we discovered that we really needed to secure data between a user’s browser and websites, and so implemented HTTPS. Now with x402, a payment infrastructure designed purely for the web and e-commerce, we’re realizing we must secure the data between agents,” said Christian, CEO of Mind Network.
Testnet Launch and How to Try It
Mind Network has made the x402z Testnet live. Users can experiment with private A2A payments using the following steps:
- Visit
- Connect a wallet to the Sepolia testnet.
- Wrap test tokens into Confidential Tokens (ERC-7984).
- Simulate a private A2A payment.
The process is designed to be straightforward for developers and researchers interested in exploring confidential AI economies.
Implications and Future Outlook
Mind Network is positioned as the first FHE infrastructure for Web3 and AI, backed by investors including Binance Labs and Chainlink. The x402z Testnet establishes a foundation for a confidential AI economy, empowering agents to transact securely and redefining the future of the autonomous web.
> “x402z exists to resolve this structural mismatch. It is the essential infrastructure for the next generation of AI agents. It does not remove verification; it preserves it. What it removes is unnecessary disclosure,” said Christian.
The launch signals a shift toward privacy-preserving blockchain solutions that cater specifically to autonomous agents. As AI systems grow more complex, the need for confidential transaction layers will likely increase.
Key Takeaways
- x402z Testnet introduces a confidential payment layer for AI agents using FHE and ERC-7984.
- The solution protects transaction data while maintaining on-chain verification.
- Mind Network’s Zero Trust protocol HTTPZ adds an extra security layer for web and e-commerce.
- The testnet is live and accessible via Sepolia, enabling developers to experiment with private A2A payments.
- Backed by Binance Labs and Chainlink, Mind Network is leading the way toward a confidential AI economy.
Conclusion
The launch of the x402z Testnet represents a significant step toward reconciling blockchain transparency with the privacy needs of AI agents. By encrypting transaction data and preserving verification, Mind Network offers a new paradigm for autonomous economic activity on public ledgers.