Eddy currents are loops of electric current that are induced within conductors when they are exposed to a changing magnetic field. This phenomenon occurs due to Faraday's law of electromagnetic induction, which states that a changing magnetic field can produce an electric current in a conductor. Eddy currents flow in circular paths and can generate heat, which is why they are often considered in applications like induction heating. These currents can also lead to energy losses in electrical systems, such as in transformers and electric motors. To minimize these losses, engineers often use laminated magnetic materials or design components to reduce the effects of eddy currents. Understanding eddy currents is essential in fields like electromagnetism and electrical engineering.