The doctrine that "the Three Realms are Mind-Only" means that all phenomena within the three realms of existence arise from the essential substance of the Tathagatagarbha mind. Why can the Tathagatagarbha give rise to all phenomena? Because the essential substance of the Tathagatagarbha mind inherently contains the seeds of all phenomena. Since it possesses seeds, it can give rise to all phenomena, for seeds represent the potential for manifestation. The seeds of all phenomena are the seven fundamental seeds within the essential substance of the Tathagatagarbha. When these are accompanied by karmic seeds, the phenomena of the Three Realms are manifested by the Tathagatagarbha. Within the phenomena of the Three Realms, the Tathagatagarbha operates through the mental factors (caittas). During its operation, it simultaneously outputs karmic seeds and the seven fundamental seeds. Utilizing the seven fundamental seeds, the Tathagatagarbha generates mental dharmas (nama) and material dharmas (rupa). When both mental dharmas and material dharmas are fully present, the phenomena of the Three Realms are complete.
In sentient beings, the Tathagatagarbha possesses only the five universal mental factors. Among these, the Tathagatagarbha's attention (manaskāra) is directed towards the seeds, towards the five-aggregates-body, towards the seven consciousnesses, and towards the material universe. The contact (sparśa) mental factor of the Tathagatagarbha contacts the karmic seeds, contacts the five-aggregates-body, contacts the seven consciousnesses, contacts the universe (material realm), and contacts the external six dusts (sensory objects). Following contact, the sensation (vedanā) mental factor operates, receiving and accepting those objects of contact. It simply accepts them without giving rise to painful or pleasant sensations; there is no feeling of pain or pleasure, solely neutral sensation (upekṣā), meaning no discernible feeling. After this reception, the perception (saṃjñā) mental factor operates. Perception involves knowing and discerning, then apprehending and retaining the characteristics (signs). The Tathagatagarbha's manner of apprehending and retaining characteristics is fundamentally different from that of the seven consciousnesses. Finally, the volition (cetanā) mental factor activates, deliberating and deciding to act. It then outputs the seven fundamental seeds to initiate transformation, and thus the phenomena of the Three Realms appear.
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