The internet is in basic terms, a system of interconnected network or networks which are made available to the public by their owners. The key to how the internet works is the "Internet Protocol", which functions by transmitting packets of information (data) from one server to another.  The flow of packages, and essentially the flow of information is controlled by both hardware and software on each of the networks which comprise the internet, and translated into usable information by applications running on our personal computers. 

Through the use of a variety of protocols which are built upon or extend the standard Internet Protocol, applications such as Web Browsers, E-mail clients, Chat applications, VoIP (Voice over Internet Protocol), and many others are able to easily communicate with internet servers and in turn provide us with the vast range of internet services we use today.