[tester756]

As far as I understand it's competitive hacking/security

which requires really solid theoretical knowledge and hands-on experience from various computer related topics like:

cryptography, reverse engineering, web, low lvl programming, operating systems, networks, protocols, etc, etc.

Top competitors tend to work at e.g Google for Project Zero or other big institutions like CERT (https://en.wikipedia.org/wiki/Computer_emergency_response_te...) or Banks

[saagarjha]

CTF is kind of like the security equivalent to what a cooking drama show (think Gordon Ramsey and a bunch of contestants) might be to being an actual chef.