Yes, you have them as do we all. They are additions to the operating system that provide functions not present in the operating system as installed. Software developers use them in order to add certain features to their software that they could not otherwise provide without their additions.
When you install third-party software these extensions, if required, are installed along with the software. Starting with the yet to be released new version of macOS, Big Sur, Apple will prevent such extensions from working. Software that you now use that depends on an extensions will have to be upgraded by the developer or it will no longer work. Apple believes this will help increase system security and reliability while reducing crashes.
I hope this answers your questions, satisfactorily. If not, feel free to ask.