This compound is primarily used in the synthesis of complex organic molecules, particularly in the pharmaceutical industry. It serves as a key intermediate in the production of various drugs, including those targeting neurological disorders and cardiovascular diseases. Its unique cyclobutane ring structure allows it to act as a rigid scaffold, enhancing the stability and specificity of the resulting compounds. Additionally, it is utilized in the development of advanced materials, such as polymers and liquid crystals, due to its ability to influence molecular alignment and mechanical properties. In research, it is often employed in studies related to ring strain and reactivity, providing insights into the behavior of small-ring systems in organic chemistry.