The document defines key concepts related to external databases. It explains that an external database refers to a collection of related data that is stored outside of a core Prolog program and can be accessed through chains. It then provides details on how external databases are defined and configured in Visual Prolog, including specifying the type, hostname, port, name, username, and password of the database. The document also outlines template parameters needed to define an external database template, such as the database server name, database name prefix, and username prefix.