The other answers are good to answer how catalase works, but in case your question is why we have this enzyme in the first place instead of letting hydrogen peroxide just stick around, here goes. H2O2 is something that acts as a free radical, giving off OH- ions. These are bad for your cells and can wreak all sorts of havoc. So, your cells have an enzyme that rapidly converts things to water and oxygen, which are much better for your cells.
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