The N1 Database is designed to complement your experiences throughout Narrative1, providing an organized venue for storing contacts, property records, phrases (Lists), and snippets of texts and images (Autotext). In effect, not only is this information removed from the user's computer - reducing the burden of limited storage space - but it then becomes universally accessible to all user's connected to the same database.
The above example illustrates the basic premise of the database: Jane and John work for the same company, and have their own copies of Narrative1 installed on their respective computers. Despite being on different computers, they are able to access the same information from their company database.