VLAN Trunking Protocol (VTP) is a Cisco proprietary protocol that propagates the definition of Virtual Local Area Networks (VLAN) on the whole local area network.
The comparable IEEE standard in use by other manufacturers is GVRP or the more recent MVRP.
VTP is responsible for synchronizing VLAN information within a VTP domain and reduces the need to configure the same VLAN information on each switch thereby minimizing the possibility of configuration inconsistencies that arise when changes are made.
However, if you were to accidentally connect a switch to the network with the correct VTP domain name and password but a higher VTP revision number than what the network currently has (such as a switch that had been removed from the network for maintenance and returned with its VLAN information deleted) then the entire VTP Domain would adopt the VLAN configuration of the new switch which is likely to cause loss of VLAN information on all switches in the VTP Domain, leading to failures on the network.
Non-matching VTP settings might result in issues in negotiating VLAN trunks, port-channels or Virtual Port Channels.