The vii°7 chord, also known as the fully diminished seventh chord, consists of a root, a minor third, a diminished fifth, and a double-diminished seventh. This unique structure creates a tense and unstable sound that is commonly used to resolve to the tonic in tonal music. The vii°7 chord serves as a leading tone chord in the context of harmony, guiding the listener's ear towards resolution, and is essential for voice leading techniques.