What is a SID in SQL Server 2008?

What is a SID? How does this relate to user inputs? What is the functionality of the SID? Can anyone explain this in simple words?

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Wikipedia material Security identifier :

In the context of the Microsoft Windows NT operating system, a Security Identifier (usually abbreviated SID) is a unique name (alphanumeric character string) that is assigned by the Windows domain of the controller during the registration process, which is used to identify the subject, such as a user or group of users in network NT / 2000 system.

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