Active Directory is the directory service used with Windows Server 2003 Domains, not workgroups. It is far more than just a database, offering a collection of additional supporting components, like transaction logs, Sysvol, logon scripts, and group policy information.
Some of the services that use AD are LDAP, Kerberos security and replication processes. Active Directory also provides a collection of utilities for administrators to use in managing the directory service. It can be installed on one or more domain controllers and if installed on more than one, replication will have to be configured to keep the databases in sync.
Since Active Directory is such a critical part of a Windows domain, networks will frequently have two Domain Controllers configured in the event that one goes down, so that the other may take over. The typical configuration of replication between two domain controllers is simple: When a change is made to an Active Directory database record, the change is replicated to all other domain controllers in the domain.
This method is called "multiple-master replication" because changes can be made from any domain controller. Single-Master Replication was a method used in old NT network environments. Changes had to be made on the Primary Domain Controller only, and changes were replicated to the Backup Domain Controllers.
The modern multiple-master method has less administrative overhead. In complex networks (i.e multiple sites, domains, or forests) replication is much more complicated, but that is a lesson for a much later time.