# Transaction Fees

## Types of Fees

By default, transaction fees on GIWA are paid in **ETH**. However, in the future, we plan to support the **Paymaster function**, which will allow users to pay transaction fees with various stablecoins.

#### **What is a Paymaster?**

A Paymaster is a system introduced in Ethereum based on the concept of **Account Abstraction**. Simply put, it enables users to execute transactions **without necessarily having to pay gas fees in ETH**.

#### Why Paymaster?

* On traditional Ethereum, every user must hold ETH in order to pay gas fees when executing transactions.
* For Web3 beginners, the idea of “what is a gas fee, and why do I need to buy ETH first?” becomes a major barrier to entry.
* Paymaster solves this problem by either **sponsoring the gas fee on behalf of the user** or allowing fees to be paid with other tokens (e.g., stablecoins).

## Transaction Fee Components

On the GIWA chain, transaction fees are made up of two components:

#### Execution Fee

The cost of executing and processing a transaction on L2 (GIWA). This works the same way as transaction fees on Ethereum. The fee is calculated as: `(gas used) × (gas price at the time)`. Like Ethereum, the GIWA chain uses the [EIP-1559](https://eips.ethereum.org/EIPS/eip-1559) mechanism to improve fee efficiency.

#### Security Fee

The cost of publishing transaction data from Layer 2 (GIWA) to Layer 1 (Ethereum). Since this is also a transaction, the corresponding Layer 1 transaction fees are charged.

{% hint style="info" %}
Why Publish Layer 1 (GIWA) Transaction Data to Layer 1 (Ethereum)?

To ensure that the GIWA chain is progressing correctly, [Data Availability](https://ethereum.org/en/developers/docs/data-availability/) is critical. Anyone should be able to download past transaction data, re-execute it, and verify. While there are multiple options for L2 data availability, publishing directly to Layer 1 (Ethereum) is known to provide the highest security. GIWA publishes directly to Ethereum to inherit strong security.
{% endhint %}

In general, execution fees are higher than security fees. Execution fees vary with Layer 2 (GIWA) network congestion, while security fees depend on Layer 1 (Ethereum) network congestion.

## Learn more

Check out the [OP Stack developer docs](https://docs.optimism.io/stack/transactions/fees) for further details.


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