Some projects only give you .tar.gz, what am I supposed to do with them? Is this what people call building from source? Am I supposed to move it to /opt and extract it in Debian based distros? Does this also work on Arch based ones?
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This is a compressed archive of files. Might be source code, might not. Depends on project. If you uncompress and extract it, there is usually a README or INSTALL file with further guidance.