Look under nearly any modern performance car, and chances are you'll find a limited-slip differential. Designed to evenly split the power being sent between drive wheels, LSDs are used on everything from Miatas to Land Rovers to put more power to the ground and therefore, improve performance.
This explainer video, put together by , gives you a quick overview on the history of the limited-slip diff, how it works, and its performance benefits. The cool thing about an LSD is that while it allows some freedom between the drive wheels, it also limits the power being sent to just one wheel, mitigating wheelspin and allowing for more traction.
Many carmakers are switching to electronically-controlled limited-slip differentials to precisely modulate just how much locking action occurs at any given moment, allowing for even greater performance and control.
But that's just a brief overview of how LSDs work. Check out the full explainer video right here.