Understanding MySQL Users

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MySQL can make use of its own user accounts. These accounts are stored in the mysql.user table. The default user created at the install is root. The root user is the server administrator. We can create more users when logged in as root or another user with the correct permissions. If we create a user as:
create user bob
This equate to bob@'%' meaning he can log on from any host
create user bob@localhost
creates an account from bob that can only be used on the server