How A Dialectric Works and How Capacitive Proximity Sensors Work - Simply Put

A capacitor is an insulator separating two conductors, and a dialectric is the name for this insulator. The electric field of attraction between the positive and negative charges on the plates of a capacitor reaches not just between the plates but also around them, like a magnetic field would, and so the dialectric is not just between the plates directly but also between and nearby. Different materials for the dialectric (such as air v. a hand) change the capacitance, and this can be detected.

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