So in advanced settings you could call a SQL database like this::
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<videodatabase>
<type>mysql</type>
<host>X.X.X.X</host>
<name>kodi_video</name>
<user>kodi</user>
<pass>kodi</pass>
</videodatabase>
This allowed you to use one central repository to link multiple kodi devices. So for example, if you watch, start, stop a show/movie on one device, you could pickup where you left off on another. Watched status's were in sync as well. And adding another box, just needed to link to DB and everything was there. So you only had one source to link up to and make backups for and everything was in sync.
Here is the URL for the koi DP topic so you can get a much better understanding.
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http://kodi.wiki/view/MySQL