The single electron transistor (SET) uses controlled electron tunneling to amplify current. SET can be used as the most sensitive device for measuring electric charge, or as a type of switching device. A SET is made from two tunnel junctions that share a common electrode. A tunnel junction consists of two pieces of metal separated by a very thin (~1 nm) insulator. The only way for electrons in one of the metal electrodes to travel to the other electrode is to tunnel through the insulator. Since tunneling is a discrete process, the electric charge that flows through the tunnel junction flows in multiples of e, the charge of a single electron.

The simplest device in which the effect of Coulomb blockade can be observed is the so-called single electron transistor. It consists of two tunnel junctions sharing one common electrode with a low self-capacitance, known as the island. The electrical potential of the island can be tuned by a third electrode (the gate), capacitively coupled to the island.

In the blocking state no accessible energy levels are within tunneling range of the electron (red) on the source contact. All energy levels on the island electrode with lower energies are occupied.

When a positive voltage is applied to the gate electrode the energy levels of the island electrode are lowered. The electron (green 1.) can tunnel onto the island (2.), occupying a previously vaccant energy level. From there it can tunnel onto the drain electrode (3.) where it inelastically scatters and reaches the drain electrode Fermi level (4.).

The energy levels of the island electrode are evenly spaced with a separation of ΔE. ΔE is the energy needed to each subsequent electron to the island, which acts as a self-capacitance C. The lower C the bigger ΔE gets. It is crucial for ΔE to be larger than the energy of thermal fluctuations kBT, otherwise an electron from the source electrode can always be thermally excited onto an unoccupied level of the island electrode, and no blocking can be observed.