The way Adaway works is similar to DNS blocking, it modifies the system hosts file which is like a local DNS. I would divide ad blockers into name resolution based (Pihole, Adguard, Adaway) and client side filters (Ublock origin etc).

Internally these types of apps are using DNS based blocking similar to this app https://f-droid.org/packages/dnsfilter.android/

Well DNS based blocking has its problems mainly devices bypassing your network defined DNS with some encrypted DNS(DoT,DoH) or using hardcoded custom DNS servers.

What is local app based tracker blocking ? Like ublock origin?

Why not rename the app to Adguard DNS and provide the adblocking functionality. ?

Go OP 😄 more power to you OP is a troll

90 % with UBO+Pihole

STOP INVENTING THINGS … Saniz Silverstone 22

Any TLDW?

What a nightmare I wish My family stopped using meta apps