If you live in the U.S, the electricity at your standard receptacle is 120 VAC.
One wire going to your receptacle is a copper wire with black insulation. It is called the “hot” wire. The other wire has white insulation. It is called the “neutral” wire.
There is a voltage on the hot wire relative to the neutral wire. It is not a DC voltage, where the voltage (for example) is exactly 120 V at all times. The voltage on the hot wire goes up to 170 V (relative to the neutral), and then back down to 0 V (relative to the neutral), and then down to -170 V (relative to the neutral), and then back up to 0 V (relative to the neutral), and then back up to 170 V (relative to the neutral), and then back down to 0 V (relative to the neutral), and then down to -170 V (relative to the neutral), etc. etc. etc. etc. Forever. It switches back and forth fairly quickly, like 60 times every second. So at any given instant in time, there is a good chance there is a fairly high (and fairly dangerous) voltage on the hot wire relative to the neutral.
Got that? O.K. Now here’s the kicker: the neutral is electrically connected to the dirt around your home. In other words, the neutral is “grounded.” This is done at your circuit breaker box and through an 8 foot copper rod that was pounded into the soil next to your house many years ago.
With me so far? O.K. Let’s say you somehow come in contact with the hot wire. Like you stick a screwdriver into the receptacle’s slot that connects to the hot wire, and you touch the metal part of the screwdriver. Will you get shocked? It depends. If no other body part is making contact with earth ground, you’ll be O.K. But if any other body part (e.g. hand, foot) is making contact with earth ground you will get shocked. Why? Because there is a voltage on the hot wire relative to the neutral wire, the neutral wire is connected to the earth, and thus there is a voltage on the hot wire relative to earth ground. One of your body parts is touching the hot wire (via the screwdriver), the other body part is touching earth ground, and you get zapped.
“Yea, but if I’m in my house, there’s no way I can make contact with the earth. So it’s impossible for me to get electrocuted inside my house.” Nope, not true. There’s lots of stuff in your house that is connected to earth ground. Like a SS sink, faucet, water from a faucet, and even a concrete floor (if you’re barefoot). In other words, at any given time one of your body parts may be grounded when you’re inside your house.
O.K., now let’s talk about grounding an appliance. Your microwave oven has a metal chassis. There’s a hot wire and neutral wire going to your microwave oven (via the electric cord), correct? Neither of these wires is connected to the oven’s metal chassis. So far so good, right? Now what would happen if the insulation on the hot wire inside the oven was compromised and the hot wire somehow made electrical contact with the oven’s metal chassis? The chassis would then be at the same voltage as the hot wire. Which means there would be a dangerous voltage between the metal chassis and earth ground. As mentioned above, one of your body parts is often grounded (especially in a kitchen), and if you touch the metal chassis of the oven you will get zapped.
So what can be done to prevent this from happening? Simple: run a *third *wire from your circuit breaker box to the oven. This wire is called the “ground” wire, and it has green insulation. At the circuit breaker box it will connect to earth ground (via the long copper rod pounded into the ground next to your house). At the oven this wire will connect to the oven’s metal chassis. Now let’s replay the scenario… a hot wire inside the oven (or some part of the circuit) somehow makes contact with the oven’s metal chassis. (Also note that the hot wire doesn’t even have to make “good” contact to the metal chassis – even a resistance of 10,000 ohms would be dangerous.) What will happen? If it is a very low resistance (“hard”) short, the circuit breaker in your panel will probably trip, and you’ll be safe. But even if your circuit breaker *doesn’t *trip because the resistance between the hot wire and metal chassis is 100 ohms or 1000 ohms 10,000 ohms or whatever, you will still be safe, because the ground wire connected to the chassis will keep the chassis at 0 V.