This chemical is primarily used in biochemical research as a substrate for studying the activity of cellulase enzymes. Cellulases are enzymes that break down cellulose into simpler sugars, and (2-Nitrophenyl)-β-D-cellobioside serves as a synthetic substrate to measure their enzymatic activity. When cellulase acts on this compound, it releases 2-nitrophenol, which can be easily detected and quantified using spectrophotometry due to its yellow color. This makes it a valuable tool for enzyme kinetics studies, screening for cellulase-producing microorganisms, and optimizing industrial processes involving cellulose degradation, such as biofuel production and textile processing. Its specificity and ease of detection make it a preferred choice in laboratory settings for enzyme assays.