What does jail breaking an iPhone mean?

I've just had this as an answer to another question, but don't understand it. It's not the same as unlocking your phone to all networks is it?

Jailbreaking is a hack to get tweaks and themes and other stuff

Its a hack to unlock your phone, you can get free applications, themes, etc.

It's what a couple people have already mentioned. Jail-breaking let's the owner have more control over their phone. You can download and put on outside apps, that otherwise Apple deemed "not good enough" or whatever else for their reasons for not putting it in their App Store. You can do a lot more with you phone, and have more control over what it does.

Jail breaking an iPhone gives you FULL privileges to change the system, this includes getting apps from other than the "app store", because of this, there's a app called cydia where everything is free.

by getting full control of the system that also allows you to modify the look of it, such as changing the font, custom home page transitions, custom lock screen and other UI mods.

and "yes", jailbreaking it unlocks all carries, but that's only 1 feature if it, since a quick Google search says that jailbreaking is the only way of unlocking it to all networks.

by doing this you void your warranty.

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