The chest is used to store items in the game, with 10 inventory slots of storage. It's storage can be accessed by pressing the use key on the chest. A chest can be destroyed using an axe, though be wary as this will also delete anything inside the chest.
If the building on which the chest is placed is destroyed, the chest will also be destroyed as well as anything inside of it. It is recommended to avoid placing chests on the edge of rafts as sharks could easily destroy them.
The chest is a hollow wooden box with metal trim around the edges. It has a lid attached by two hinges on the back. It doesn't matter where you place it even if its physically impossible to place (if the hinges are placed wrong)
The chest used to have a bug where if you save the game you will lose your items in the chest.