High-$T_c$ cuprates differ from conventional superconductors in three crucial aspects: the superconducting state descends from a strongly correlated Mott-Hubbard insulator, the order parameter exhibits d-wave symmetry and superconducting fluctuations play an all important role. We formulate a theory of the pseudogap state in the cuprates by taking the advantage of these unusual features. The effective low energy theory within the pseudogap phase is shown to be equivalent to the (anisotropic) quantum electrodynamics in (2+1) space-time dimensions (QED$_3$). The role of Dirac fermions is played by the nodal BdG quasiparticles while the massless gauge field arises through unbinding of quantum vortex-antivortex degrees of freedom. A detailed derivation of this QED$_3$ theory is given and some of its main physical consequences are inferred for the pseudogap state. We focus on the properties of symmetric QED$_3$ and propose that inside the pairing protectorate it assumes the role reminiscent of that played by the Fermi liquid theory in conventional metals.
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