Nitrogen is used for diluting the oxygen, because 100% oxygen are deadly harmful for cells. Consider why H2O2 has the effects of killing the bacteria and germs? Because the decomposition of H2O2 will release pure oxygen as it is deadly harmful. So nitrogen can dilute oxygen and nitrogen itself is inert which will not influence our cell.
Just like salt is important for us, but all the living creatures can not survival in pure salt. Life come from sea which is a kind of water solution with salt.
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