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Serrated knives are used for crusty bread, where you need to be able to cut through the crust without breaking the crust or crushing the loaf. Even with a sharp plain edge, the pressure required to cut through the crust is generally more than it takes to just smash the loaf. With serrations, you are actually sawing through the bread using a back-and-forth motion and less downward pressure. This is also why bakeries slice bread with bandsaws instead of knives.