7CH3LM1
is your machine name, and it helps identify the instance of SQL Server you're connecting to. In this case, you are connecting to a named instance of SQL Server running Express Edition, and its instance name is SQLEXPRESS
. A machine can run multiple instances of SQL Server concurrently, and it can have one default instance and 0, 1 or multiple named instances. To connect to the default instance, you would use 7CH3LM1
, and to connect to a named instance, you would use 7CH3LM1\<instance name>
, as you have with 7CH3LM1\SQLEXPRESS
.
I typically rename my machines to something a little more memorable and meaningful, as that can make things much easier, but that's just me.
An instance of SQL Server can contain many databases. You can specify the database in your connection string as well (recommended), or you can rely on your login's default database to define initial context (not recommended, since that database could be offline, single user, detached, etc. - which will affect your ability to log in).
Ultimately, your software will need both an instance and a database in order to read / write data.