diff --git a/actions/auth.js b/actions/auth.js
new file mode 100644
index 0000000..bf0fd3b
--- /dev/null
+++ b/actions/auth.js
@@ -0,0 +1,19 @@
+import { queryOne } from "@/lib/db";
+import bcrypt from "bcryptjs";
+
+export async function validateCredentials(username, password) {
+  const user = await queryOne("SELECT * FROM users WHERE username = ?", [
+    username,
+  ]);
+
+  if (user && bcrypt.compareSync(password, user.password)) {
+    return {
+      id: user.id,
+      username: user.username,
+      role: user.role,
+      teamId: user.team_id,
+    };
+  }
+
+  return null;
+}
diff --git a/database.sqlite b/database.sqlite
new file mode 100644
index 0000000..a1ad0f1
Binary files /dev/null and b/database.sqlite differ
diff --git a/jsconfig.json b/jsconfig.json
new file mode 100644
index 0000000..9c33383
--- /dev/null
+++ b/jsconfig.json
@@ -0,0 +1,8 @@
+{
+  "compilerOptions": {
+    "baseUrl": ".",
+    "paths": {
+      "@/*": ["./*"]
+    }
+  }
+}
diff --git a/lib/init-db.js b/lib/init-db.js
new file mode 100644
index 0000000..c253a76
--- /dev/null
+++ b/lib/init-db.js
@@ -0,0 +1,33 @@
+import { run } from "./db.js";
+
+async function initializeDatabase() {
+  try {
+    // Create users table
+    await run(`
+      CREATE TABLE IF NOT EXISTS users (
+        id INTEGER PRIMARY KEY AUTOINCREMENT,
+        username TEXT UNIQUE NOT NULL,
+        password TEXT NOT NULL,
+        role TEXT DEFAULT 'user',
+        team_id INTEGER,
+        created_at DATETIME DEFAULT CURRENT_TIMESTAMP
+      )
+    `);
+
+    // Create teams table
+    await run(`
+      CREATE TABLE IF NOT EXISTS teams (
+        id INTEGER PRIMARY KEY AUTOINCREMENT,
+        name TEXT NOT NULL,
+        code TEXT UNIQUE NOT NULL,
+        created_at DATETIME DEFAULT CURRENT_TIMESTAMP
+      )
+    `);
+
+    console.log("Database initialized successfully");
+  } catch (error) {
+    console.error("Database initialization error:", error);
+  }
+}
+
+initializeDatabase();