According to Wikipedia, A cycloidal Speed Reducer or cycloidal drive is a mechanism for reducing the speed of an input shaft by a certain ratio. Cycloidal Speed Reducers are capable of high ratios in compact sizes.

The input shaft drives an eccentric bearing that in turn drives the cycloidal disc in an eccentric, cycloidal motion. The perimeter of this disc is geared to a stationary ring gear and has a series of output shaft pins or rollers placed through the face of the disc. These output shaft pins directly drive the output shaft as the cycloidal disc rotates. The radial motion of the disc is not translated to the output shaft.

Cycloidal Speed Reducer Structure Diagram
Cycloidal Speed Reducer Structure Diagram
Cycloidal Speed Reducer Exploded View
Cycloidal Speed Reducer Exploded View

The input shaft is mounted eccentrically to the ball bearing, causing the cycloidal disc to move in a circle. The cycloidal disc will independently rotate around the bearing as it is pushed against the ring gear. This is similar to planetary gears, and the direction of rotation is opposite to that of the input shaft.

Cycloidal Speed Reducer Working Diagram
Cycloidal Speed Reducer Working Diagram

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Reference: http://en.wikipedia.org/wiki/Cycloidal_drive