Dynamite

is a means of Unlocking new areas in the town. It is obtained in Cave Structures in the Mines or Chests in the overworld, and is utilized to destroy large boulders blocking paths around the town.

Mining
can be used as a tool with which to mine. It appears to apply a "damage value" to any ores within its range. Depending on the rarity of the node, it may take more than a single stick.

Combat
may also be utilized as a weapon. A single does enough damage to kill a Wyrm or Spriggull. Turabadas are especially weak against Dynamite.

can be used to kill other Players by throwing it near them or lighting it and placing it in their Tool Belt.