Anti-Lock Braking System

An anti-lock braking system, or ABS (from the German, Antiblockiersystem) is a safety system which prevents the wheels on a motor vehicle from locking while braking.

A rotating road wheel allows the driver to maintain steering control under heavy braking by preventing a skid and allowing the wheel to continue interacting tractively with the road surface as directed by driver steering inputs. While ABS offers improved vehicle control in some circumstances, it can also present disadvantages including increased braking distance on slippery surfaces such as ice, packed snow, gravel, steel plates and bridges, or anything other than dry pavement. ABS has also been demonstrated to create a false sense of security in drivers, who may drive more aggressively . 
ABS brakes on a BMW motorcycle
In 1988 BMW became the world's first motorcycle manufacturer to introduce an electronic/hydraulic ABS system, this on their BMW K100. In 1992 Honda launched its first ABS system, this on the ST1100 Pan European. In 1997 Suzuki launched its GSF1200SA (Bandit) with ABS.
Operation
The anti-lock brake controller is also known as the CAB (Controller Anti-lock Brake).

A typical ABS is composed of a central electronic control unit , four wheel speed sensors — one for each wheel — and two or more hydraulic valves within the brake hydraulics. The ECU constantly monitors the rotational speed of each wheel, and when it detects a wheel rotating significantly slower than the others — a condition indicative of impending wheel lock — it actuates the valves to reduce hydraulic pressure to the brake at the affected wheel, thus reducing the braking force on that wheel. The wheel then turns faster; when the ECU detects it is turning significantly faster than the others, brake hydraulic pressure to the wheel is increased so the braking force is reapplied and the wheel slows. This process is repeated continuously, and can be detected by the driver via brake pedal pulsation. A typical anti-lock system can apply and release braking pressure up to 20 times a second.  
Traction control system

The ABS equipment may also be used to implement traction control system (TCS, ASR) on acceleration of the vehicle. If, when accelerating, the tire loses traction, the ABS controller can detect the situation and take suitable action so that traction is regained. Manufacturers often offer this as a separately priced option even though the infrastructure is largely shared with ABS. More sophisticated versions of this can also control throttle levels and brakes simultaneously.

Mercedes-Benz was the first to offer this electronic traction control system in 1985. 

Efficiency 
Reduced the risk of multiple vehicle crashes by 18 percent,
Reduced the risk of run-off-road crashes by 35 percent.

On high-traction surfaces such as bitumen, or concrete, many (though not all) ABS-equipped cars are able to attain braking distances better (i.e. shorter) than those that would be easily possible without the benefit of ABS. In real world conditions even an alert, skilled driver without ABS would find it difficult, even through the use of techniques like threshold braking, to match or improve on the performance of a typical driver with a modern ABS-equipped vehicle. ABS reduces chances of crashing, and/or the severity of impact. The recommended technique for non-expert drivers in an ABS-equipped car, in a typical full-braking emergency, is to press the brake pedal as firmly as possible and, where appropriate, to steer around obstructions. In such situations, ABS will significantly reduce the chances of a skid and subsequent loss of control.

In gravel, sand and deep snow, ABS tends to increase braking distances. On these surfaces, locked wheels dig in and stop the vehicle more quickly. ABS prevents this from occurring. Some ABS calibrations reduce this problem by slowing the cycling time, thus letting the wheels repeatedly briefly lock and unlock. The primary benefit of ABS on such surfaces is to increase the ability of the driver to maintain control of the car rather than go into a skid — though loss of control remains more likely on soft surfaces like gravel or slippery surfaces like snow or ice. On a very slippery surface such as sheet ice or gravel, it is possible to lock multiple wheels at once, and this can defeat ABS (which relies on comparing all four wheels, and detecting individual wheels skidding). Availability of ABS relieves most drivers from learning threshold braking.

A June 1999 National Highway Traffic Safety Administration (NHTSA) study found that ABS increased stopping distances on loose gravel by an average of 22 percent.[7]

According to the NHTSA,

"ABS works with your regular braking system by automatically pumping them. In vehicles not equipped with ABS, the driver has to manually pump the brakes to prevent wheel lockup. In vehicles equipped with ABS, your foot should remain firmly planted on the brake pedal, while ABS pumps the brakes for you so you can concentrate on steering to safety."
Risk compensation
Anti-lock brakes are the subject of some experiments centred around risk compensation theory, which asserts that drivers adapt to the safety benefit of ABS by driving more aggressively. In a Munich study, half a fleet of taxicabs were equipped with anti-lock brakes, while the other half had conventional brake systems. The crash rate was substantially the same for both types of cab, and Wilde concludes this was due to drivers of ABS-equipped cabs taking more risks, assuming that ABS would take care of them, while the non-ABS drivers drove more carefully since ABS would not be there to help in case of a dangerous situation. A similar study was carried out in Oslo, with similar results

.