It's called nominalization, and yes, it is used to turn verbs (and verb clauses into nouns).
All we need to treat verb clauses as a noun is by attaching a generic noun to the clause: 「こと」(事)
「の」 can also be used as a noun replacement. The difference is 「こと」 is a more general statement while 「の」 is specific to the context of the sentence.
Further reading: