Location
Can be found in the starting area by following Monk west to his house after the Prologue.
Properties
Allows Shin to break ice/crystal blocks, ushering in the main portion of the game and effectively opening it up to fully explore.
Trivia
Because of the large collection of scrolls in Monk's basement, it can be reasoned that he has some big connection with them. It is possible that he created/wrote most/all of them, being a teacher figure of sorts, or maybe simply that he collects them and stashes them to collect dust in his basement like a secluded hoarder. No, Senpai would never do that; it must be the first one.