Terminology
The key terms used throughout the Pterodactyl documentation.
Panel — Pterodactyl Panel itself. You use it to manage users, nodes, and servers.
Node — A machine that runs Wings. Each node can host many servers.
Wings — The service, written in Go, that runs on each node. It controls Docker and gives the Panel secure access to the servers on that node.
Server — A game or application server created by the Panel. Servers run on nodes, and a node can run many servers.
Docker — A platform that runs applications in isolated, secure containers.
Docker Image — A package that contains everything an application needs to run, such as Java for a Minecraft server.
Container — Each server runs in its own container. The container limits the server's CPU, memory, and disk use, and keeps it separate from other servers on the same node. Docker creates the containers.
Egg — The configuration for one type of server, such as Vanilla, Paper, or BungeeCord for Minecraft.
Tag — A label on an egg or a node. Tags group eggs, for example by game, and decide which nodes a server can be deployed to. In 2.0, tags replace the nests used in 1.x.
Extension — A package that adds features to the Panel. See Extensions.
Yolks — A curated collection of Docker images for use with Pterodactyl's eggs.
Simple Setup Diagram

Advanced Setup Diagram
Panel and Wings on the same machine
You may also install Wings on the Panel's machine, so that one machine runs both.
