Cat, it's for both, and same purpose. In a RAID 5, for each section of disk (I forget the break out) in say a 4 disk array, 3 have data, one has a parity to make sure the other three stay intact. Because of that parity, you can assume the data on the 'lost' disk while it's replaced, and rebuild it, due to reverse construction of the bit/bytes. Same concept, expanded further.
Lose two drives and it's game over though, as most folks are well aware. 🙂
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