what is the purpose of a wastegate on the turbo wat is it good for

 

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If it gets stuck shut you'll fry the turbo and take out a coolant seal.

 

I'm assuming you know how a turbo works. The higher the engine revs, the more exhaust gases it produces. The more exhaust gases it produces, the faster it spins the turbo. The faster the turbo spins, the more air gets pumped into the engine. The more air that gets pumped into the engine, the more exhaust gases that are produced. The more exhaust gases that are produced, the faster the turbo spins. Do you see where this is going?

Left to its own devices a turbo would simply produce as much boost as its size allows. This would quickly result in blown engine, so a method of controlling boost is required.

The wastegate is a bypass that opens when the max desired boost is reached and bypasses some of the exhaust gases around the exhaust turbine instead of through it. This holds the boost level steady.

For more info, read this page.