Versioning
Retaining previous versions of a file so earlier states can be recovered.
SharePoint and OneDrive version files automatically, which covers accidental overwrites and, with enough versions retained, some ransomware scenarios where a clean earlier version still exists.
The limits are the number of versions kept and the fact that mass encryption can consume them. It reduces the need to reach for a backup without removing it.
Where this comes up
Versioning sits inside our backup and disaster recovery work. If you are trying to work out what this means for your own environment rather than in the abstract, that is the page worth reading next, and a short call will get you a straight answer faster than either.