What does the “Network” mean in the Testnet2 Locus Wallet?

In the Testnet2 wallet, two network options are available: 

TESTNET2 and localhost.

Both connect to Testnet2 nodes, but the difference lies in how the connection is made: 

1. localhost: Used when you have installed and are running a node locally. The wallet connects directly to your local node. 
2. TESTNET2: Used when you are not operating your own node. The wallet connects to public nodes provided by Locus Chain.