What is the correct understanding of how Soy is applied within Liferay?

The correct understanding of how Soy is applied within Liferay is that it can handle both client-side and server-side rendering. Soy, or Closure Templates, is a templating system that allows developers to create reusable components and templates within Liferay. This capability is particularly important because it bridges the gap between client-side and server-side operations.

When used on the server-side, Soy can render HTML output, which can then be sent to the client's browser for immediate display. This enables developers to leverage server-side resources and logic while producing dynamic content that can easily be updated without requiring a full page reload. Additionally, Soy's client-side capabilities allow for rendering templates in the browser, enabling a seamless user experience with fewer dependencies on server interactions for rendering views.

The versatility of Soy in managing both sides of the rendering process makes it a powerful tool in Liferay, facilitating the creation of efficient and responsive web applications. Other options incorrectly categorize the functionality of Soy, either limiting its use or suggesting it lacks significance in the Liferay ecosystem.