# Payment Composition

Transaction Payment = ***Gas fee*** + ***Price***\
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**Gas Fee:** Gas refers to the fee required to conduct transactions or execute contracts on the BNB network. It is compensation for validators that provide computing power used to process these interactions. The gas fee is the fee you need to pay for any on-chain transaction. A gas fee is a blockchain transaction fee paid to network validators for their services to blockchain. Without the fees, there would be no incentive for anyone to stake their money and help secure the network.\
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**Price:** The amount of money you pay on a platform in order to get something done.\
\
Example 1: NFP has launched a lottery with a scenario that every payment of 1BNB can get a chance to win a jackpot prize. Because it is an on-chain lottery draw, the action of the agreeing to pay 1BNB is an on-chain transaction. You need to pay a certain gas fee denoted in BNB (usually 3 gwei or 3x10^-9 of a BNB), and at the same time pay 1 BNB (price for a lottery ticket) to conduct a lottery draw.\
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Example 2: Alice wants to sell a painting on chain for 10 BNB (***Price***), Bob likes to buy it. Bob needs to pay a certain gas fee (3 gwei) plus 10 BNB to buy the painting.


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