A multitenant solution is one used by multiple customers, or tenants. Tenants are distinct from users. Multiple users from a single organization, company, or group form a single tenant.
There is a solution architecture for provisioning multi-tenant system by using multiple database.

What you need to understand :
- Logical and physical tenants
Logical tenant is what user see but physical tenant is something at real physical sharing between tenants.

For example : Logical tenant A and B is share same physical resource (app, database, services..).
2. level of multi tenant isolation
We have different level of isolation sharing between multi tenants :

Each solution for isolation level has pros and cons. For example of Database isolation:
One database per tenant | Database can be created in dedicated server or distributed to many servers. Hard for provisioning and manage. But highest scalability. |
One table per tenant | Each tenant has own table with prefix_name. Share same single db. Less database instance to manage. |
One table share multi tenants | Each table has column tennant_id to classify each tenant data. Harder to scale for each tenant separately. |