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Synchronizes the Engine: This gear sits on the end of the camshaft. It is connected by a chain (which would run through that rectangular tunnel in your cylinder block) to the crankshaft.
Operates the Valves: As it spins, it turns the camshaft, which opens and closes the intake and exhaust valves at exactly the right moment relative to the piston's position.
The "Keyway": Notice the little notch in the center hole? That’s a keyway. It locks onto a "Woodruff key" on the shaft to ensure the gear cannot slip, which would cause the engine's timing to fail (and potentially lead to the piston hitting the valves).