The third prong is a grounding plug. Generally it’s only used for things that have a metal chassis to provide an extra layer of protection.
In most AC circuits, the neutral wire acts as the ground. But in some instances, an appliance could become damaged and internal live wiring may come into contact with the external metal case. This would cause you to get shocked if you touch it. The ground wire connects to the metal casing, creating a lower resistance path to ground than your body. That third prong usually attaches to the neutral bus bar in your circuit breaker panel, or some other metal grounded object like an outdoor water pipe. Devices made of non-conductive materials like plastic, wood, or glass, don’t require additional grounding, so they don’t really need a third prong.
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