This structure typically represents the Five Dhyani Buddhas (Buddhas of Wisdom): the central Buddha, often Mahāvairocana, embodies the central wisdom, while the surrounding four represent the other four transcendent wisdoms of the four directions.
The mandala serves as a sacred blueprint for the universe and a spiritual palace for the deities. It is used as a visual guide in meditation to help the practitioner envision the divine realm and move from the chaotic outer world to the enlightened center.

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