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Relay Defination and Question

Hey, Just had a quick question... I was doing the Relay example and I don't totally understand what a "relay" is. Can you explain what the purpose and usage of relay is for?

On the same note, if my prediction is correct about what a relay is, is it possible to make a blinky example with a relay where the peripheral blinky is on one side and the relay would help extend the bluetooth the connection (recieve the command from the peripheral and send to the central blinky). image description

Something like this image