Perlite is a amorphous volcanic glass (SiO2) with a high water content. This is heated to pop into a white pebble like substance. It's significance in Gardening is due to its high water retention, porosity and light weight characteristics.
It creates aeration when mixed in soil/cocopeat, which helps in rooting for young plants. It also has an aesthetic property and hence is used to cover the top of the soil for small indoor plants.

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