This compound is primarily used in biochemical research as a substrate for detecting phosphatase activity. It is particularly valuable in assays where the enzymatic activity of phosphatases needs to be measured or visualized. When phosphatases act on this substrate, they cleave the phosphate group, leading to the formation of an insoluble colored precipitate. This property makes it highly useful for histochemical staining techniques, allowing researchers to localize and quantify phosphatase activity in tissue samples or cell cultures. Additionally, it is employed in diagnostic applications to identify and study phosphatase-related pathways in various biological systems. Its specificity and sensitivity make it a reliable tool for both academic and clinical research.