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Basically, it is a differential that limits the difference in rotational speed between wheels on opposite ends of the axle. In other words, if the wheel on one side loses traction and begins spin faster than the other, the differential acts to transfer power from the slipping wheel to the one with better traction.
Probably the best-known brand name for this type of differential (rear end) is Positraction (or "Posi"), which is GM's tradmark for their Limited Slip Differential built by Eaton.
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