This compound is widely used as a substrate in enzymatic assays, particularly for alkaline phosphatase. It serves as a key reagent in biochemical research to measure enzyme activity, as the enzyme catalyzes the hydrolysis of this compound, producing a detectable color change. It is also employed in diagnostic kits for clinical laboratories to assess liver function and bone disorders. Additionally, it finds application in molecular biology for detecting and quantifying phosphatase activity in various biological samples. Its stability and sensitivity make it a preferred choice in these analytical and diagnostic procedures.