The difference between the two locations of the connected database

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Hello, experts. There are two ways for mendix to connect to a Database, one is created in the Setting TAB, and the other is connected through the Database Connector. I don't know the difference between the two. I only know that the former is that persistent entities can use Xpath. The latter is a non-persistent entity and can use SQL. Is there any difference beyond that?
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The settings option is for the database that you use with your application.

The module is used to connect to other (external) databases.

With the module you can access the Mendix database as well, but that is not recommended.

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