All online materials I have read so far state that laminations reduce eddy currents but how is this so? I mean why would currents be smaller this way than having a big block of unlaminated iron core which would cause the resistance of said block to be much higher than to have it laminated? In any case even if the loops have individual smaller currents, were you to add them all up, wouldn't the sum of the currents equal that to a big eddy current flowing through the whole transformer.
Also by adding varnish or paper between the laminated layers, wouldn't this increase the reluctance of the core for the magnetic flux passing through it, increasing transformer core losses?
P.D. As side question, I know magnetic hysteresis is caused by the friction between the magnetic flux and the core molecules as they become magnetised. Therefore, does the core's reluctance value represent this fenomenon or does it just represent the inherent "magnetic resistance" characteristic to the material (and/or shape)?