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... a neural network consisting of a layer of these things between the input and the output is a single layer perceptron ...

... and a network consisting of several layers of these stacked on top of each other between input and output is called a multi-layer perceptron ....

As you can imagine, multi-layer perceptrons are more powerful than single-layer perceptrons. In 1969, Marvin Minsky and Seymour Papert wrote a book called Perceptrons in which they proved mathematically that single-layer perceptrons couldn't cope with classification tasks that were linearly inseparable. This book was influential and marked a turning point in the fortunes of neural networks. Up to that time, people had put all their faith in single-layer perceptrons (and had achieved some impressive things with them). Suddenly, Minsky and Papert had shown that they were severely limited!
Effectively, the book killed off research into neural networks for about fifteen years. True, people did know that you could get more power out of perceptrons by stacking the layers up, but they didn't know how to train multi-layer perceptrons. Researchers didn't take neural networks seriously again until about the mid-eighties, when the Back-propagation algorithm for training multi-layer perceptrons was discovered.
It can be shown that a network such as the one shown can, in theory, solve pretty much any classification problem, providing there are enough nodes in each layer. Indeed, researchers publish papers with titles such as "Three layers are enough for any problem." But when you meet such people, make sure you ask them to specify exactly what they mean by a layer.
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