Nitrous oxide can be used as an oxidizer in a rocket motor. This has the advantages over other oxidizers that it is non-toxic and, due to its stability at room temperature, easy to store and relatively safe to carry on a flight. As a secondary benefit it can be readily decomposed to form breathing air. Its high density and low storage pressure enable it to be highly competitive with stored high-pressure gas systems.
In a 1914 patent, American rocket pioneer Robert Goddard suggested nitrous oxide and gasoline as possible propellants for a liquid-fueled rocket. Nitrous oxide has been the oxidizer of choice in several hybrid rocket designs (using solid fuel with a liquid or gaseous oxidizer). The combination of nitrous oxide with hydroxyl-terminated polybutadiene fuel has been used by SpaceShipOne and others. It is also notably used in amateur and high power rocketry with various plastics as the fuel. An episode of MythBusters featured a hybrid rocket built using a paraffin/powdered carbon mixture as its solid fuel and nitrous oxide as its oxidizer.
Nitrous oxide can also be used in a monopropellant rocket. In the presence of a heated catalyst, N2O will decompose exothermically into nitrogen and oxygen, at a temperature of approximately 1300 °C. Because of the large heat release the catalytic action rapidly becomes secondary as thermal autodecomposition becomes dominant. In a vacuum thruster, this can provide a monopropellant specific impulse (Isp) of as much as 180s. While noticeably less than the Isp available from hydrazine thrusters (monopropellant or bipropellant with nitrogen tetroxide), the decreased toxicity makes nitrous oxide an option worth investigating. Because of its release of very high temperature oxygen as a monopropellant the addition of even small amounts of a fuel such as hydrogen rapidly increases the specific impulse and the high oxygen temperatures simplify ignition of the fuel. Isp greater than 340 seconds can be readily achieved. Its low freezing point also eases thermal management as compared to hydrazine -- a valuable property on a spacecraft which may contain quantities of cryogenic propellant.
In vehicle racing, nitrous oxide (often referred to as just "nitrous" in this context to differ from the acronym NOS which is the brand Nitrous Oxide Systems) allows the engine to burn more fuel and air, resulting in a more powerful combustion. The gas itself is not flammable, but it delivers more oxygen than atmospheric air by breaking down at elevated temperatures.
Nitrous oxide is stored as a compressed liquid; the evaporation and expansion of liquid nitrous oxide in the intake manifold causes a large drop in intake charge temperature, resulting in a denser charge, further allowing more air/fuel mixture to enter the cylinder. Nitrous oxide is sometimes injected into (or prior to) the intake manifold, whereas other systems directly inject right before the cylinder (direct port injection) to increase power.
The technique was used during World War II by Luftwaffe aircraft with the GM 1 system to boost the power output of aircraft engines. Originally meant to provide the Luftwaffe standard aircraft with superior high-altitude performance, technological considerations limited its use to extremely high altitudes. Accordingly, it was only used by specialized planes like high-altitude reconnaissance aircraft, high-speed bombers and high-altitude interceptors.
One of the major problems of using nitrous oxide in a reciprocating engine is that it can produce enough power to damage or destroy the engine. Very large power increases are possible, and if the mechanical structure of the engine is not properly reinforced, the engine may be severely damaged or destroyed during this kind of operation. It is very important with nitrous oxide augmentation of internal combustion engines to maintain proper operating temperatures and fuel levels to prevent preignition, or detonation (sometimes referred to as knocking or pinging). Most problems that are associated with nitrous do not come from mechanical failure due to the power increases. Since nitrous allows a much denser charge into the cylinder it dramatically increases cylinder pressures. The increased pressure results in heat, and heat will cause many problems from melting the piston, cylinder head or valves, to predetonation.
The two engines have a direct relationship to our turbo charged diesels, hope this helps to clarify a few things, i'll post the composition of the elements later.