Plays an important role in regulating the left-right axis by blocking a tgfb1 cascade in the right posterior paraxial mesoderm. Functions as an inhibitor of bmp, tgfb1, nodal, activin and wnt signaling in the ectoderm. May inhibit mesodermal signals, probably through an inhibition of nodal/activin pathways. Seems to regulate cell fate specification and competence before the onset of neural induction. Expression in the entire ectodermal region prior to gastrulation might act to prevent fate specification in the ectoderm and ensure the maintenance of the stem-cell-like properties exhibited by ectodermal cells