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Workshop is a powerful peer assessment activity. The documentation on Workshop settings explains the different options available.
Students submit their own work and then receive a number of submissions from other students which they must assess according to the teacher's specifications. (They may also assess their own work if the teacher requests this.) Text may be typed directly into Moodle's editor, or files of any type may be uploaded, as long as others have the software to view them. See Using Workshop for details of the phases involved. The teacher can decide whether to show or hide the identities of the students to each other when assessing is taking place.
Two grades are given and appear in the Gradebook: a grade for the student's own submission and a grade for the quality of their peer assessment skills. See Workshop grading strategies for more information.
Workshop is primarily a student-focused activity; however, the teacher may guide the students by providing example submissions for them to try out before assessing their peers and at the end of the workshop the teacher may publish some good (or less good) examples.
For a working example of a workshop activity, see the Celebrating Cultures course in the School Demonstration site. with the username teacher and password moodle.
https://www.youtube.com/embed/8QypkOcAEaE