This might surprise you, but the system in your car that traction control has the most in common with is the anti-lock braking system(ABS). When you brake hard in a car, there's a risk that the tires will lock up; that is, instead of rolling to a stop, ABS lowers the risk of a wheel freezing.
Traction control is basically an anti-lock braking system in reverse. anti-lock brakes prevent the wheels from locking up when the car is decelerating. Traction control keeps the wheels from locking up or skidding when the car is Accelerating. When you step on the gas, a lot of power gets routed to the car's wheels, and that can sometimes cause a skid.It's easy to slip, especially if you're accelerating on a slick road.
In a basic car setup, there's a mechanical linkage between the throttle and the accelerator pedal. Sometimes, that mechanical link is replaced with an electronic drive-by-wire system. That means that, instead of a direct link from the pedal, to the throttle (which increases the engine power, and thus the force applied to the wheels), you have an electronic connection that sends signals to a sensor. The sensor translates the pressure you put on the accelerator into an electric signal that gets sent to a control unit.
The control unit reads the input as well as the feedback from the wheels and routes power to the wheels according to the driver's input and whether or not the wheels are slipping. In cars with traction control, the hydraulic unit that controls the anti-lock braking system also gets a traction control component. If the sensor detects too much wheel slippage, it can use the hydraulic of ABS to apply braking pressure to some (or all) of the wheels.
All of these components work together, constantly monitoring driver inputs and wheel slippage and reacting in a split second if a slippery situation is detected. Traction control is most evident when you're accelerating from a stop. And while you're likely to not be going very fast in those situations, having your wheels spin can still cause you to lose control of the car and potentially cause significant damage to those around you, too. Traction control is particularly beneficial when roads are wet, slick or icy.
Traction control is also particularly helpful when you're driving a powerful car. Tromp on the gas of a powerful car, and you're likely to set the tires spinning and the car into a skid in a direction you didn't intend on. Traction control regulates the power to the tires, keeping the car on the path you set. it's a system that helps keep them on track and in control.