The confusion is from terminology.
A Database is an organized collection of data. MC is, itself, a database manager (as is iTunes). It stores its data in its Library, which is a small set of files that MC uses to track where the files live on disk, and their attributes (tags, etc). That's the database, not the files on disk. iTunes has the same thing, stored in a small set of files (typically in your Music directory in your home directory).
iTunes also has a feature where it can automatically manage the files' locations themselves, moving them around and "hiding" them away from the user (buried deeply in that same Music directory).
MC does not have a direct corollary to this iTunes feature. However, it has tools for you to manage them yourself, and it is much more flexible and powerful than what iTunes provides.
The core of MC's filesystem management system is found under Tools > Library Tools > Rename, Move, and Copy Files. This system allows you to predefine profiles for how you'd like the files on your system to be stored. In this way, you can choose when MC moves and renames the files, and how it does it, specifically, based on the file attributes themselves. It isn't fully automated like the iTunes system, but it is much more flexible (and doesn't create duplicates everywhere like iTunes).