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What is a Torrent File?
The BitTorrent protocol can distribute a large file without the heavy load on the source computer and network. Rather than downloading a file from a single source, the BitTorrent protocol allows users to join a "swarm" of hosts to download and upload from each other simultaneously . The protocol works as an alternative method to distribute data, and even small computers, like mobile phones, with low bandwidth are able to distribute files to many recipients.
A user who wants to upload a file first creates a small torrent descriptor file that he distributes by conventional means (web, email, etc.). He then makes the file itself available through a BitTorrent node acting as a seed. Those with the torrent descriptor file can give it to their own BitTorrent nodes which, acting as peers or leechers, download it by connecting to the seed and/or other peers.
- Taken from
Wikipedia
What this means in layman terms is it allows users to download large files quickly and you can share your files with other individuals as there are many "nodes" in a torrent network and every user can act to 'seed' a file once they have downloaded it.