The detection of laughing gas (nitrous oxide, or N2O) in the atmosphere of a celestial body, such as a planet or moon, could potentially indicate the presence of life. This is because nitrous oxide is a byproduct of certain microbial processes on Earth, and is not typically found in significant amounts in non-biological systems. However, there are also non-biological sources of nitrous oxides, such as volcanic activity or meteorite impacts, so the presence of nitrous oxide alone is not definitive evidence of life. Additional evidence, such as the detection of other biosignatures or the discovery of microbial fossils, would be needed to confirm the presence of life on a celestial body.
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