Used primarily in biochemical research, this compound serves as a substrate for studying enzyme activity, particularly in assays involving proteolytic enzymes like trypsin or thrombin. It helps in understanding enzyme kinetics and specificity due to the presence of the nitroanilide group, which releases a colored product upon cleavage, allowing for easy detection and quantification. Additionally, it is utilized in peptide synthesis as a protected arginine derivative, enabling the controlled formation of peptide bonds in complex molecular structures. Its applications extend to drug development, where it aids in the design and testing of enzyme inhibitors.