It's a Forstner bit, a type of drill bit used for making precise holes in wood. It has a cylindrical shank and a cutting edge with a perimeter tooth, making it perfect for drilling pilot holes, making slot cuts, and angling bores in soft and hardwoods. Its design provides smooth, easy cutting and optimal cutting geometry, making it ideal for woodworking projects. The bit is made of high-quality steel and is precision-made, allowing for precise control and accuracy.