What does Leviticus 4:7 mean?

Then he’ll put some of the blood on the horns of the altar where incense is burned in God’s presence. The rest of the blood he’ll pour out at the base of the altar where burnt offerings are made, at the entrance to the tent. Leviticus 4:7 - Modern Text Bible

(The blood is applied to the most sacred places, showing that the sin has affected the whole community’s relationship with God and needs to be dealt with at the core.)