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I don't believe there is a way to see what is on your clipboard, as the iPhone's copy-paste feature only keeps one thing (the most recent) on your clipboard. That being said, there are a variety of apps on the app store that allow you keep multiple items on a clipboard and use them as needed (some of which comes with a widget that makes them a bit more useful). Hope that helps.
Clipboard is used in apps mostly. It's basically copy and paste. Some photo apps have a clipboard option in the App. So copy an image, then bring it in the app with the clipboard option.