Acts as a ligand for Notch (N) receptor. Essential for proper ectodermal development. Serrate represents an element in a network of interacting molecules operating at the cell surface during the differentiation of certain tissues. Restricted exclusively to cells of ectodermal origin. Ubiquitinated by mind-bomb, leading to its endocytosis and subsequent degradation. Separation of neuroblasts from the ectoderm into the inner part of embryo is one of the first steps of CNS development in insects, this process is under control of the neurogenic genes. Notch and Serrate may interact at the protein level, it is conceivable that the Serrate and Delta proteins may compete for binding with the Notch protein.