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k3d deploys (multi-node) K3s clusters on a single Docker Host. Basically you can create multi-node Kubernetes clusters, where each node is a single Docker container. You have control-plane nodes (servers) and worker nodes (agents). Servers run the control-plane components, e.g. etcd, controller-manager, etc.. (Though in K3s, all components are embedded in a single binary.) The LoadBalancer (nginx-proxy) you see in the image is another container which is part of k3d (not K3s) and it helps to manage incoming connections in multi-node clusters.