This is a good question. Ive wondered this myself. I thought i looked it up before but cant remember what info i found.
I know its an explosive of some kind but just never messed with it enough to figure it out. Ive never even seen it used in anyones videos, console or pc version.
My guess its more less a land mine to kill other players in public matches. Maybe lay a whole floor down of them if it lets the tribe that made them walk over them and live. Unless there's plain blocks that match it then you make a path like Indiana Jones Last Crusade.
Well, I think there was a pressure plate trigger things before there were wirings. But if you make it with gunpoweder, then Graw is right, when something steps on it it blows. Kinda like a landmine.