SKALE BITE V2 on RelAI - Encrypted Transactions Meet Zero-Gas Payments

SKALE Base already proved that zero-gas payments work. SKALE BITE V2 takes it further: zero gas and encrypted transactions.

What is BITE?

BITE (Blockchain Integrated Threshold Encryption) is SKALE's protocol for encrypting transactions before they reach consensus. Every transaction submitted to a BITE-enabled chain is encrypted in the mempool, decrypted only after block inclusion is finalized. No validator, no searcher, no one can see the transaction contents before execution.

For x402 payments, this means:

• No MEV extraction - payment transactions cannot be front-run or sandwiched
• No payment sniping - the signed transferWithAuthorization is invisible until settled
• Privacy by default - transaction amounts and participants are hidden until finalized

How It Works

The payment flow is identical to every other EVM network on RelAI:

1. API returns HTTP 402 with x402 v2 payment requirements
2. User signs an EIP-3009 transferWithAuthorization - a single off-chain signature
3. RelAI submits the encrypted transaction on SKALE BITE V2 - zero gas cost
4. BITE decrypts after consensus - USDC moves from buyer to merchant atomically
5. User receives the API response - instant access

Technical Details

EIP-3009 + BITE

The EIP-3009 transferWithAuthorization signature is created off-chain by the user, just like on any other EVM network. When RelAI submits this to SKALE BITE V2, the transaction is automatically encrypted before entering the mempool. Validators process the encrypted transaction, and decryption happens only after the block is finalized. The result: atomic USDC transfer with zero gas and full transaction privacy.

Why BITE Matters for x402

MEV Protection

On public mempools, a signed transferWithAuthorization is visible before execution. A sophisticated attacker could theoretically extract value by observing payment patterns. On BITE, this vector does not exist - the authorization is encrypted until after execution.

Agent Privacy

As AI agents increasingly use x402 to pay for API access, the pattern of which agents call which APIs becomes valuable intelligence. BITE ensures this pattern is not observable on-chain until after the fact.

Micropayment Viability

For Developers

Setting Up SKALE BITE V2 Payments

{
  network: 'skale-bite',
  facilitator: 'relai',
  pricing: {
    'GET /data': { amount: '100' }  // $0.0001 in USDC (6 decimals)
  }
}

Using the RelAI SDK

import { createX402Client } from '@relai-fi/x402'
const client = createX402Client({
  evmWallet: {
    address: userAddress,
    signTypedData: wallet.signTypedData,
  }
})
const response = await client.fetch('https://your-api.com/data')
// Same SDK, same flow - BITE encryption is transparent to the developer

Getting USDC on SKALE BITE V2

USDC on SKALE BITE V2 Sandbox is available through the SKALE ecosystem tooling. Once on the chain, USDC works identically to other EVM networks - same EIP-3009 signatures, same atomic transfers, with added BITE encryption.

SKALE BITE V2 vs SKALE Base

Both are zero-gas SKALE chains. The difference:

Use Cases

• AI agent payments - agents paying for data feeds, model inference, and tool access without revealing their strategy
• Competitive intelligence APIs - consuming market data without broadcasting which datasets you're buying
• High-frequency micropayments - thousands of sub-cent API calls with zero gas and zero MEV
• Private API marketplaces - buyers and sellers transact without public visibility of usage patterns

Start Building

SKALE BITE V2 support is live now on the RelAI Facilitator. Set network: 'skale-bite' in your API configuration and start accepting encrypted zero-gas USDC payments.

New to RelAI? Check out our quickstart guide or explore the marketplace to see x402 APIs in action.