One input shaft from the engine, two output shafts with one going to each wheel. The two output shafts are free to spin relative to each other with one restriction, the rate of rotation of the input shaft is the average of the rate of rotation of the two output shafts.
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There’s a very nice video from Chevrolet made in 1937 that explains a simple mechanical differential very clearly.
It can get quite complex with more advanced designs, but these are pretty much the basics to all of it.
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