The term 'Tao' is a concept in Confucianism which refers to the way of life that is based on harmony with nature and the universe. It is believed to be the source of all creation and is seen as the ultimate truth. Taoism is a philosophical and religious tradition that emphasizes living in harmony with the Tao, or the natural order of the universe. Taoism is based on the teachings of Lao Tzu, an ancient Chinese philosopher.