Using this technique, a wide variety of objects and even living things can be stored within scrolls, and can be released when the scroll is opened or meets a specific condition. It is possible to seal ninjutsu into a scroll, as demonstrated by Kisame Hoshigaki, who placed sharks into his Water Prison Technique that he sealed into a scroll, which would activate and imprison anyone that tried to read the scroll upon opening it.
To save chakra, instead of sealing a nature element into a scroll that was created through chakra, one could just use pre-existing nature elements, like water from an ocean, and seal it within the scroll. Though a scroll is the most common use of sealing something, as demonstrated by Ajisai in the anime, this technique can be used to seal things into a small sheet of paper too.
This technique is fundamental to the creation of ammunition for the Kote.