This compound is primarily utilized in biochemical research as a specialized reagent for studying enzyme activity and protein interactions. Its structure, featuring a benzyloxycarbonyl protecting group and a dinitrophenyl moiety, makes it particularly useful in peptide synthesis and as a substrate for proteolytic enzymes. Researchers employ it to investigate the specificity and kinetics of enzymes like proteases, which are critical in understanding cellular processes and developing therapeutic agents. Additionally, its unique design allows for the detection and quantification of enzyme activity through spectrophotometric methods, leveraging the distinct absorbance properties of the dinitrophenyl group. This chemical is also valuable in the development of enzyme inhibitors, aiding in the discovery of drugs targeting specific enzymatic pathways in diseases such as cancer and inflammatory disorders.