minecraft

online-mode

Server checks connecting players against Minecraft account database. Set this to false only if the player's server is not connected to the Internet. Hackers with fake accounts can connect if this is set to false! If minecraft.net is down or inaccessible, no players can connect if this is set to true. Setting this variable to off purposely is called "cracking" a server, and servers that are present with online mode off are called "cracked" servers, allowing players with unlicensed copies of Minecraft to join.

• true - Enabled. The server assumes it has an Internet connection and checks every connecting player.
• false - Disabled. The server does not attempt to check connecting players.

Or put another way:

online-mode=false
# If true then all connected players must be authenticated to Xbox Live.
# Clients connecting to remote (non-LAN) servers will always require Xbox Live authentication regardless of this setting.
# If the server accepts connections from the Internet, then it's highly recommended to enable online-mode.
# Allowed values: "true" or "false"

Not too sure lol. I think it might be sort of online, since I can't play it when the internet's off. You might want to ask edward.