Eddy currents are loops of electric current induced within conductors (such as metals) when exposed to a changing magnetic field according to Faraday's law of induction. These currents flow in closed loops within the conductor, in planes perpendicular to the magnetic field causing them. Eddy currents are generated either when a conductor moves through a magnetic field or when the magnetic field around a stationary conductor varies. They create their own magnetic field that opposes the original change, which can cause effects like magnetic damping or heating of the conductor. Eddy currents are significant in various applications such as electromagnetic braking, induction heating, metal detection, and non-destructive testing, but they can also cause unwanted energy loss in transformers, motors, and other electrical devices.