How does the Audi A3's Quattro four-wheel drive system work?

I've heard good things about the Quattro four-wheel drive system used in the Audi A3, but I'm not familiar with how it actually works. Can someone explain the mechanics behind it?

The Quattro system utilizes a center differential to distribute power between the front and rear axles, resulting in improved stability and traction. I've personally driven through some rough terrain with my A3 and the Quattro system handled it with ease.

The system constantly monitors road conditions and can distribute power to individual wheels, improving cornering and overall performance. It's great for both snowy and rainy conditions.

I've found that the Quattro system really shines in acceleration and cornering, providing a smooth and seamless driving experience. Definitely one of the standout features in the A3.