Every system provides it owns benefits and drawbacks, and although the more difficult coupling China systems are generally excellent they have an attached price that far exceeds the simpler systems.
The downside to the machine is it is extremely complicated and very expensive, and typically only used for racing/track applications for its high speed cornering potential.
Torque Vectoring Differential 940x310The yellow arrow highlights the torque transfer occuring through the corner, generated by the artifical level of resistance getting exerted by the TVD on the outside wheel. This allows for greater acceleration from the corner while the car’s turning abilitty is usually increased.
A Torque Vectoring Differential is with the capacity of channelling 100% of the available torque through a single wheel when needed in the many extreme of circumstances.
With the TVD exerting more resistance onto the outside wheels clutch, it tricks the system into diverting more torque through it – increasing the amount power which can be applied and reducing the understeer skilled under acceleration out of a corner.
By 
continuing to apply this level of resistance through the corner, as the vehicle passes the apex and begins to accelerate out it’ll continue to override a normal multiway-LSD – which would again interpret the quicker moving outside wheel as slipping and divert torque during acceleration to the inside wheel, which it perceives as having more hold.
However, rather than releasing the resistance upon both tires a TVD continues to activate the clutch externally wheel only – increasing the resistance experienced simply by that wheel and making the system channel more torque through it. This imbalance of capacity to the outside encourages the vehicle to turn in to the corner sharper and reducing understeer.