How to understand the circle of fifths and its significance in music theory?

The circle of fifths is a tool used in Music Theory to understand the relationship between different keys and chords. It organizes the 12 major and minor keys in a circular pattern based on the intervals of fifths. This helps musicians identify key signatures, chord progressions, and modulations in music. Understanding the circle of fifths can enhance a musician's ability to compose, analyze, and perform music effectively.