The principle of stratification
An electric water heater—often referred to as a hot water tank—generally works with a storage system. It doesn't heat water continuously, but rather stores a certain volume of hot water for daily use. It consists of an enamel-coated tank within a steel casing, a heating system, a heating element, a thermostat, and an anti-corrosion system. It works based on the principle of stratification.
Cold pressurized water enters the tank as it empties to meet hot water demand. The incoming cold water is heated by the electric element and gradually rises to the top of the tank. Just like air, hot water is less dense than cold water, so it naturally rises. Cold water, being heavier, stays at the bottom. This physical principle creates layers of water at different temperatures—hence the term "stratification."