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Yes, indeed. I didn't understand that at the beginning, and I was very confused.
A couple of examples are
· https://anigma.io/ is an example of a kind of chat room based on Nostr
· https://coracle.social/ is one of a clone of social network owned by the narcissistic ego-maniacal multibillionaire
I haven't stumbled upon a TURN server based on Nostr yet, but I'm sure I will sooner or later. :-)
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It's a simple API for publishing and subscribing to messages hosted on a public database.
Each data store hosts a web-socket relay for broadcasting messages. Clients use digital signatures for identity and authentication.
Nostr also has a decent system for querying and filtering data. So you can use a relay to run a twitter clone, or a TURN server, or a chat room, etc.