Many everyday objects were hung from the waist by these type of cords. Useful for drawing up bags and purses, garments were laced up with cords or 'chains' as they were termed.
Lucets were often crudely made of horn, bone or wood.
(From "The History of Needlework, tools and accessories" by Sylvia Groves.)
This method of weaving gives a cord of squared proportions. You can keep on knotting threads almost indefinitely, and with a thick thread, the cord formed is very strong. The method of knotting does not make the cord elastic in any way however.
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