This document discusses binary decision diagrams (BDDs) and their use in formal verification of VLSI systems. It describes how BDDs can be constructed to represent Boolean functions and circuits. The ordering of variables in a BDD impacts its size, and ordered BDDs provide a canonical representation of functions. BDDs can be used for equivalence checking and other formal verification tasks by comparing the structure of BDDs representing different functions or circuits. Well-ordered BDDs provide an efficient way to perform tasks like validity checking, satisfiability checking, and implication checking on circuit representations.