Distributed Version Control (DVC) is a system that allows multiple users to work on a project simultaneously while keeping track of changes. Unlike centralized version control systems, where a single server holds the main project files, DVC enables each user to have a complete copy of the project repository on their local machine. This setup enhances collaboration and reduces the risk of data loss. In DVC, changes made by users are recorded as "commits," which can be shared with others. Popular tools like Git and Mercurial exemplify DVC, allowing teams to merge their work seamlessly and maintain a history of all modifications.