Eddy current brakes work by generating eddy currents in a conductor when it moves through a changing magnetic field. This induces an opposing magnetic field that creates a braking force based on Lenz's law. There are two main types - circular brakes with a disc between electromagnet poles, and linear brakes using a rail and magnetic yoke. Advantages include no wear, adjustable braking, and being lightweight; disadvantages are reduced braking at low speeds and difficulty designing and simulating the system. Applications include high speed trains and roller coasters.