A diff shows what changed between two versions of a text. Given the amount of time developers spend reading diffs in version control, it is easy to forget how often you need one for something that is not in a repository at all.
The usual cases: comparing two API responses to find the one field that differs, checking a config file against the version actually deployed, seeing what an editor changed in a draft, verifying that a migration produced identical output, or working out why two supposedly identical environment variable lists behave differently.
This tool compares line by line and shows the result side by side, with additions, removals and unchanged lines marked. It uses a longest-common-subsequence algorithm, which is the same approach version control tools take, so a block of inserted lines is reported as an insertion rather than shifting every following line and reporting the whole rest of the file as changed.
Word-level highlighting is available for lines that were modified rather than added or removed outright. On a long line where one value changed, knowing the line differs is not much help; seeing which word differs is the actual answer.
There are also options for the differences you usually do not care about. Ignoring case, ignoring leading and trailing whitespace, and ignoring blank lines will each remove a class of noise, which matters when comparing text that came from different sources and has picked up formatting differences that are not real differences.