what is the use of lightning:formattedText in Salesforce lightning component?

A lightning:formattedText component displays a read-only representation of text, wrapping URLs and email addresses in anchor tags (also known as "linkify"). It also converts the r or n characters into <br /> tags.

To display URLs and email addresses in a block of text in anchor tags, set linkify="true". If not set, URLs and email addresses display as plain text. Setting linkify="true" wraps URLs and email addresses in anchor tags with target="_blank". URLs and email addresses are appended by http:// and mailto:// respectively.

For Example:
<aura:component>
<lightning:formattedText linkify="true" value="I like salesforce.com and trailhead.salesforce.com." />
</aura:component>