What is the purpose of oil in a transformer and how does it function?

The purpose of oil in a transformer is to provide insulation and cooling. Transformer oil acts as an insulating medium, preventing electrical arcing between conductive parts. Additionally, it dissipates heat generated during operation, maintaining optimal temperature levels. The oil circulates within the transformer, absorbing heat and transferring it to the radiator or cooling system, ensuring efficient performance and longevity of the transformer.