Drywall is compressed gypsum between harder stock paper or in some cases fiberglass. It makes a much easier and nicer interior finish over past ways of having slats and plaster or some real or faux beaded wood paneling. In some modern construction it has to be used when a structural sheathing is used like thermoply, thermobrace or dryline is used to have the proper structural strength for walls in stud built house.
Drywall is relatively cheap, lightweight, provides for a smooth, flat surface which is easy to paint. It is strong enough to support things like small shelves, pictures etc. It is easily cut on-site which makes it easy to embed cut outs like power outlets and other hidden wiring and plumbing.
This makes it much cheaper and faster to build internal support structure (for strength) which might look unsightly but can then be covered up by drywall. Another advantage to drywall is that it is very easy and fairly cheap to place insulating material in between which can significantly reduce heating and cooling costs.
Contrast drywall to alternatives like concrete blocks, brickwork or finished wood surfaces. A construction like bricks or concrete blocks (with a plaster surface) might be preferable in very damp areas. But these are slower to build and much harder to run things like electrical and plumbing. And heavy stuff might not do well in places with earthquakes and lots of ground settling – a lighter more flexible construction might be safer and less prone to cracks.
It’s what walls are generally made of. Look in your house chances are the walls you are looking at are drywall.
Drywall is basically 2 pieces of heavy paper with gypsum in between them. It comes in big sheets, so it is easier and cheaper and less labor intensive to build walls. And houses have a lot of walls.
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