Glossary

Key terms and concepts in the Pelago ecosystem.

A

AI Agent Payment Automated payments made by AI agents using the x402 protocol, with predefined spending limits and operator oversight.

Batch Settlement Aggregating multiple payments into a single on-chain transaction to reduce gas costs.

DID (Decentralized Identifier) W3C standard for self-sovereign identity. Pelago uses DIDs for the PID system.

KYA (Know Your Agent) Verification process for AI agents making autonomous payments, including operator identity and spending controls.

KYC (Know Your Customer) Identity verification process required for higher transaction limits.

Liquidity Pool Pool of funds used to aggregate and settle payments efficiently. Liquidity providers earn yield by depositing funds.

PayFi (Payment Finance) Innovative model combining payment functions with financial services using blockchain and smart contracts.

PID (Payment ID) Decentralized identity for payments based on W3C DID standard, enabling privacy-preserving verification.

PLP (Payment Liquidity Pool) Pelago's liquidity pool infrastructure for batched settlements.

Settlement The process of transferring completed payment funds to merchant wallets.

Smart Contract Self-executing code on blockchain that manages payment logic without intermediaries.

Verifiable Credential Cryptographically signed attestation about a PID (e.g., KYC status, credit score).

Webhook HTTP callback that notifies your server when payment events occur.

ZKP (Zero-Knowledge Proof) Cryptographic technique to prove a fact without revealing underlying data.