The Shadow DOM brings encapsulation. It allows a component to have its very own DOM tree, which can’t be accidentally accessed from the main document, may have local style rules, and more. When creating a new component, the component’s developer doesn’t need to know anything about the application this particular component is running in. That further simplifies the development.
In older literature, you may find the elements <shadow> and <content>. Both are deprecated and no longer part of the current Web Component ...