Eddy currents are generated when a conductor experiences a changing magnetic field, leading to circulating currents within the material. In braking systems, these currents create energy loss due to resistance, functioning similarly to a short-circuited generator. The mechanical load from the eddy currents contributes to the braking effect, despite not resembling a traditional generator setup. This explanation clarifies the fundamental operation of eddy currents and their role in energy dissipation during braking. Understanding this concept can enhance comprehension of electromagnetic principles in practical applications.