There are a ton of good how to videos on making these things so I am not really going to go into that.
What can Para Cord be used for? - Used whole or gutted it has many uses, here are a few:
Rope
Fishing Line
Added grip for knives and other handles
Floss
Bow Sting - Fire Bow
Snare
Repair of gear and clothing (packs, tents, clothes, shoes.....)
Lanyard
Emergency shelter(under a tarp etc...)
Weave container, bag, belt...
Laundry Line
Spider Web for gear on a pack, truck bed - over headlights
Gun Sling
Keep soldiers from going crazy (soldiers make lots of stuff with it)
Parachute cord (also paracord or 550 cord) is a lightweight nylon kernmantle rope originally used in the suspension lines of US parachutes during World War II. Once in the field, paratroopers found this cord useful for many other tasks. It is now used as a general purpose utility cord by both military personnel and civilians. This versatile cord was even used by astronauts during STS-82, the second Space Shuttle mission to repair the Hubble Space Telescope. The braided sheath has a high number of interwoven strands for its size, giving it a relatively smooth texture. The all nylon construction makes paracord fairly elastic; depending on the application this can be either an asset or a liability. - Wiki
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