All gear-driven, torque-biasing differentials work under the same principles, but the Wavetrac adds a couple of features that address one of the inherent weaknesses in this kind of a system.
First, let’s get through the basic function of a geardriven, torque-biasing differential. It works on the principle of worm gears and worm wheels.
What are those?
A worm gear’s teeth …
Read the rest of the story
Here's a good video that shows you how a Torsen works, near the end:
This is an infinite torque bias ratio Torsen which means that it can drive a wheel with zero traction to the opposite wheel without anything like a Wavetrac mechanism, but also that it will easily send all of the power to the inside wheel in a corner, which is obviously not something you'd want in a real car.
This is great video showing how a Torsen works:
Here's their video on a clutch type lsd, for those interested: