Every system offers it owns benefits and drawbacks, and although the more complicated systems are generally superior they have an attached price that far exceeds the easier systems.
The downside to the system is it is very complicated and incredibly expensive, and typically only used for racing/track applications because of its high speed cornering potential.
Torque Vectoring Differential 940x310The yellow arrow highlights the torque transfer occuring through the part, generated by the artifical level of resistance being exerted by the TVD on the outside wheel. This allows for higher acceleration out from the corner as the car’s turning abilitty is usually increased.
A Torque Vectoring Differential is capable of channelling 100% of the obtainable torque through an individual wheel when needed in the the majority of extreme of circumstances.
With the TVD coupling China exerting more level of 
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 experienced under acceleration out of a corner.
By continuing to use this level of resistance through the corner, as the automobile 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, instead of releasing the resistance on both wheels a TVD continues to activate the clutch on the outside wheel only – increasing the resistance skilled simply by that wheel and making the system channel more torque through it. This imbalance of power to the outside encourages the automobile to turn into the part sharper and reducing understeer.