How does the quattro all-wheel drive system work?

I've heard a lot about Audi's quattro all-wheel drive system but I'm not sure exactly how it works. Can you explain it to me?

The quattro all-wheel drive system distributes power between all four wheels to improve traction and handling in various road conditions.

It uses sensors to monitor wheel slippage and can transfer power to the wheels with the most grip to improve traction.

In my experience, the quattro system has provided excellent stability and control while driving in snow and rain.