The launch of the x402z protocol marks a significant development for the on-chain AI agent ecosystem. Mind Network, a decentralized privacy-preserving network, has announced its integration with this protocol, aiming to provide a critical privacy layer for AI-driven economic activities on the blockchain. The core challenge addressed is the inherent transparency of public blockchains, which can expose sensitive data processed by AI agents. Mind Network’s solution leverages Fully Homomorphic Encryption (FHE) to enable computations on encrypted data. This allows AI agents to access and analyze user data for personalized services without ever decrypting the underlying information, thereby maintaining user confidentiality. This integration is positioned as a foundational step for scaling the AI agent economy. By mitigating privacy risks, it could foster greater user adoption and enable more complex, data-sensitive agent interactions, from decentralized finance (DeFi) to personalized AI assistants. The move highlights the growing industry focus on combining advanced cryptographic techniques with artificial intelligence to build a more secure and trustworthy Web3 infrastructure.