Glossary — Agentic Finance

What is Micro-Authorization?

1 min read Updated

Individually authorizing each small agent payment in real-time rather than batch approval. Every micropayment passes through full policy evaluation.

WHY IT MATTERS

Thousands of small payments tempt batch authorization — but that removes per-transaction safety checks catching anomalies.

Micro-authorization maintains validation at high volume. Each payment evaluated in milliseconds, catching problems without slowing legitimate ones.

Only feasible with fast engines. Sub-millisecond evaluation makes it practical at hundreds of transactions per minute.

HOW POLICYLAYER USES THIS

PolicyLayer provides micro-authorization — every payment, regardless of size, passes through full policy evaluation in real-time.

FREQUENTLY ASKED QUESTIONS

Performance at scale?
PolicyLayer evaluates in under 10ms. Even at 1000 tx/minute, the overhead is negligible compared to blockchain confirmation time.
Why not batch?
Batch authorization approves transactions without individual inspection. A single malicious or erroneous transaction in the batch goes undetected.
Different from rate limiting?
Rate limiting caps frequency. Micro-authorization ensures quality — every transaction is individually validated, regardless of rate.

FURTHER READING

ENFORCE POLICIES ON EVERY TOOL CALL

Intercept is the open-source MCP proxy that enforces YAML policies on AI agent tool calls. No code changes needed.

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