How does the Quattro system in the Audi R8 enhance its handling and performance?

I've heard a lot about the Quattro system being a major selling point of the Audi R8, but I'm not sure exactly why. Can someone explain how it works and how it makes the car better?

The Quattro system is a permanent all-wheel drive system that uses a center differential and torque vectoring to constantly distribute power to each wheel. This not only improves traction and stability, but also enhances the car's handling and cornering abilities.