Text formats give us several options to compose a page or a post (that makes up the page).
Example - The Homepage
Above showing a theme-specific shortcode for inserting an image with instruction to the system this is just a plain vanilla image with file id of 339 and to align the image 'center'.
The theme we're using on the site comes with Visual Shortcodes. We don't have to use shortcode in its raw form. It comes in the form of 'blocks' that you can drag and drop on a page so you can easily build your pages.
Dynamic shortcodes is building on top of Shortcodes with some additional and advanced functionalities
Example:
Use CKEditor if you don't know HTML or CSS. Using CKEditor is just like using the text editor of most email interface. You have a palette at the top portion where you can go to make a word appear in bold or italics, for example, or make a bulleted list. Only in this case you can even create links and insert images.
Use html if you have some background using it and you know CSS
Use Plain text if inserting only some plain text and you don't really need styling applied on your text.
The advantage of using shortcodes comes in its ability to give us better control over the layout of our page.
Moreover, there is a shortcode called HTML that allows us to position text anywhere on the layout, and still use text formats like CKEditor, HTML and Plain Text inside that HTML shortcode'block'.