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This effect is useful in many industrial and scientific applications whereby a chemical reaction may produce a solid that can be collected from the solution by various methods (e.g. filtration, decanting, centrifuging).
Precipitate formation is useful in detecting the type of cation in an unknown salt. To do this, an alkali first reacts with the unknown salt to produce a precipitate which is the hydroxide of the unknown salt.
To identify the cation, the colour of the precipitate and its solubility in excess are noted.