Authentication:

The first packet sent by the client to the server is the authentication packet.
After some simple SQL query a verification packet is returned to the client by the server.
If the authentication is successful the task that managed the socket connection keeps the the connection open and waits for new requests from the client.

Password hashing:

The actual password from the client is never sent over the network.
Instead the equilavent SHA256 hash is sent.

Authenticate via command prompt:

You can also connect via starting the client with command prompt parameters.
e.g. EpicDragonWorld -account pandrian -password 12345

Setting the host IP address:

The project is set to run on a single computer 127.0.0.1 (localhost).
On server there is no need to set a specific IP, just make sure port 5055 is open.
On client you can change the IP at Assets\Scripts\Config\NetworkConfigurations.cs

"There is no login server implementation, game server handles the authentication process."

"The configuration to automatically create accounts is enabled by default."