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What is the function of the SID?

What is the function of the SID?
Security identifier (SID) is a unique security identification number assigned to security principals (objects that can be assigned access to objects in Windows). Users, groups and computers are assigned SIDs. This uniquely identifies the user group or computer to the domain or to the local computer if a local account is used. For example, when a user logs on a collection of his SID, the SIDs of groups of which he is a member is made. This list is used when he needs to access a resource -- say, a file. The file has a Discretionary Access List (DACL) that is composed of access control entries (ACE) that include a SID and what permission that SID has on the file. The DACL is checked against the user's list, and a decision can be made whether or not to let him access the file.

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