## Key Terms

| Term | Definition |
|:---:|	:---:|
| **L2 and L3 (Rollups)** | L2 refers to blockchain scaling solutions that handle transactions off Ethereum L1, with settlement and data availability on L1. Rollups batch hundreds of transactions into a single transaction on L1. By posting validity proof to L1, rollups inherit the security of Ethereum. L3 is to L2 what L2 is to L1. | 
| **ZK-Rollups** | 	L2 smart contracts that verify transactions using cryptographic proofs that are computed off-chain and verified on L1, enabling very low transaction fees and high scalability. Note that although StarkEx and StarkNet are generally referred to as ZK-Rollups, they are not actually zero knowledge. The correct term is Validity-Rollup. | "
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Term	Definition
L2 and L3 (Rollups)	L2 refers to blockchain scaling solutions that handle transactions off Ethereum L1, with settlement and data availability on L1. Rollups batch hundreds of transactions into a single transaction on L1. By posting validity proof to L1, rollups inherit the security of Ethereum. L3 is to L2 what L2 is to L1.
ZK-Rollups	L2 smart contracts that verify transactions using cryptographic proofs that are computed off-chain and verified on L1, enabling very low transaction fees and high scalability. Note that although StarkEx and StarkNet are generally referred to as ZK-Rollups, they are not actually zero knowledge. The correct term is Validity-Rollup.	"
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