In information technology and computer science, a system is described as stateful if it is designed to remember preceding events or user interactions; the remembered information is called the state of the system.
In a traditional cloud computing architecture, the database is most likely used as state storage. In the blockchain world, the whole blockchain is a giant distributed state machine. For example, Ethereum itself is a state machine. Everytime clients send transactions to update the state, every new block means a new updated state is released.
In the TEA Project, we don't store the application state in the blockchain. Instead, the state is stored in a group of state_machine_replicas. We use a new Proof of Time hardware consensus to achieve super fast speed (relative to traditional blockchain) and processing power without sacrificing security or scalability.