A MySQL database is a database used by each application you wish to use on your site. For example, if you just want to use your store on your site, this uses 1 MySQL database. If you wish to install a WordPress blog on your site as well, this uses 1 additional MySQL database. And similarly, if you wish to install a message board or some other type of database-driven application, that would also use 1 more MySQL Database. The starter plan includes 2 MySQL databases, so you could have up to 1 additional application installed on your site in addition to your main store. If you wish to have more than 2 applications on your site, you would need a more advanced plan.
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