I've run into rails stack term for many times but I still can't get what do people call rails stack furthermore what is a good knowledge of the rails stack?
A "rails stack" refers collectively to all the software needed to run a webapp using Ruby on Rails, most importantly:
You'll also often see more project-specific libraries mentioned (e.g. here).
This means that the expression "knowledge of the rails stack" is misleading, because different Rails projects may use quite different stacks. What is probably meant is "knowledge of Rails as well as various frameworks and libraries commonly used with Rails".
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