Every system has it owns benefits and drawbacks, and although the more difficult systems are generally superior they have an attached price that far exceeds the simpler systems.
The downside to the system is it is extremely complicated and incredibly expensive, and typically only used for racing/track applications for its high speed cornering potential.
Torque Vectoring Differential 940x310The yellow-colored arrow highlights the torque transfer occuring through the corner, generated by the artifical coupling China resistance getting exerted by the TVD on the outside wheel. This enables for better acceleration out from the corner as the car’s turning abilitty is certainly 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 exerting more resistance onto the exterior wheels clutch, it tricks the machine into diverting more torque through it – increasing the total amount power which can be applied and reducing 
the understeer experienced under acceleration out of a corner.
By continuing to apply this resistance through the corner, as the vehicle passes the apex and begins to accelerate out it will continue to override a standard multiway-LSD – which would again interpret the faster 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 upon both tires a TVD proceeds to activate the clutch on the outside wheel just – increasing the resistance skilled simply by that wheel and making the machine channel more torque through it. This imbalance of power to the outside encourages the vehicle to turn into the corner sharper and reducing understeer.