Grid computing is an application of cluster computing. David Bader, in his paper, available as a pdf download, Cluster Computing: Applications, in The International Journal of High Performance Computing, 15(2):181-185, May 2001 , says
“The performance of an individual processor used in a high-end personal workstation rivals that of a processor in a high-end supercomputer, such as an SGI Origin, and the performance of the commodity processors is improving rapidly.”
Written in 2001, Bader is talking about state of the art computers of the time, used in clusters. The strides made in personal computers since mean the clustering he discusses in the paper used with the computers of today make possible a degree of computing power he does not imagine.
Grid computing is the use of many personal computers/workstations to solve distributed problems. Each individual computer, or node, on the grid receives a packet of information to process when the computer is not otherwise active. It actually does not matter how advanced or high-end the particular computer is, as long as it can process the project it is given. No other node is directly connected to that PC, so it does not need to have any synchronization with any other node. All information is sent back to a central computer, and it sends out a new task when a node completes a task.
Several grid computing projects have the accumulated processing power of computers in the top500 list of supercomputers. It is estimated that nearly three million home computers around the world are working on the SETI@home project. While this does not come near the speed of a top level supercomputer, or mainframe, it is the astonishing number of tasks that these networks can handle which makes them remarkable. It also is a way for personal computer users to participate in some of the most advanced scientific work on the planet, simply by allowing access to their computer when they are not using it. Other large grid computing projects are working on Alzheimer's disease and on information from the Large Hadron Collider.