"Patches" are small scripts that take an existing file, a difference file (patch.vcdiff) and create a new file based on those differences. This is usually done using a program called xdelta3 which implements RFC 3284.
Concept: FileA + differences.vcdiff = FileB
Usually a shell language is used for the actual script like batch and/or bash and the patch bundle includes the xdelta3 binary.
Use Cases:
Patches are typically used when needing to make very small changes to very large files in a binary exact way (the hash of newFileB must match the hash of originalFileB).