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It's basically your master key for your console's encryption. All the other keys are encrypted with it, and one of them can be modified if you have the OTP. Thus particular key is used to determine a random panic address the cpu jumps to on boot failure, and we replace it with one which will jump to a9lh as its random address.
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I probably have some details wrong, but the general idea is correct.
Not quite accurate, the OTP is hashed and the hash is used to determine the key used to decrypt the N3DS keystore (or for o3DS, to encrypt it as it would be if it were an N3DS). The second key is used to decrypt the arm9 kernel in K9L2, and can be corrupted to gain execution in combination with the bootrom FIRM underwrite flaw. On N3DS it is possible to execute a bootstrapped k9lhax by brute forcing the existing second NAND key to gain access to the uncleared OTP hash to secure permanent k9lhax.It's basically your master key for your console's encryption. All the other keys are encrypted with it, and one of them can be modified if you have the OTP. Thus particular key is used to determine a random panic address the cpu jumps to on boot failure, and we replace it with one which will jump to a9lh as its random address.
--------------------- MERGED ---------------------------
I probably have some details wrong, but the general idea is correct.