SQL is a database. Well, technically SQL is actually the language you use to communicate with a database, but people often call databases 'SQL'. Microsoft have a database engine that is called 'Microsoft SQL Server'.
An actual database itself is a bunch of tables, with lists of data in. Each column has a column name, e.g. 'Username', 'Password', 'EmailAddress'. Then you have one rows in the table for each user. e.g. "John Smith", "pass123", "jsmith@..."
What you would need is to create a program that acts as your server - this is connected to the internet. Your server program would simply accept and validate logins (e.g. from your actual 'game' you send the username and password over the internet to the server).
The server would check in it's database (i.e. list of users) to check your information is entered correctly - if so, you're allowed to continue and enter the game.
Your server could also track positions of players (e.g. their X, Y and Z values if your game is 3D), and stuff like their hair colour etc.
Have a look at Gnet (look at the top of this page on the menu) to understand how client to server connections work. That should be your first step.
Then have a look at how databases work - perhaps look at Microsoft Access if you have it, as it's a fairly simple introduction to how databases work. Then look at MySQL, which is a fairly standard database that can run on a server and could be used in a game.
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