alternating current
In the wires of your home the current does not flow steadily one way — it sloshes back and forth, dozens of times each second. That is alternating current. A battery gives direct current (DC, always one direction); the grid gives AC. It answers the everyday question: what kind of electricity comes out of the wall?
Precisely, AC is a current (and voltage) that varies as a sine wave, I(t) = I_0 sin(omega t), reversing direction every cycle. Its frequency f — 50 Hz across much of the world, 60 Hz in North America — is the number of full back-and-forth cycles per second, with omega = 2 pi f. Because it keeps swinging, we quote its effective value, the RMS (root-mean-square) value: for a sine wave, I_rms = I_0 / sqrt(2). Mains figures like 120 V or 230 V are RMS values; the peaks are sqrt(2) times higher.
AC is used for the grid because transformers can step its voltage up for efficient long-distance transmission and down again for safe use — and transformers only work on a changing current. The honest subtlety is that AC's average current is actually zero (it cancels over a cycle), which is exactly why we use the RMS value: it is the value that delivers the same heating power as an equivalent steady DC.
A wall outlet rated 230 V RMS at 50 Hz actually swings between about +325 V and -325 V, because the peak is 230 * sqrt(2), and it completes 50 full cycles every second.
230 V is the RMS value; the sine wave peaks near plus or minus 325 V.
The stated voltage of mains is the RMS value, not the peak. RMS is defined so that the AC delivers the same average power as a DC of that value.