How Does A Router Work?

The word 'router' describes a kind of equipment that is used to connect two or more different networks and also to transfer data packets. So you can say that it is the equipment that is used to transfer or forward data packets along the networks.
       
The equipment follows a very simple process and is connected to at least two LAN or WAN network. A switch is used to connect different machines in network and Router is used to connect the two different networks. It makes use of forwarding tables and headers to establish the most excellent path to forward packets. It uses protocol such as ICMP protocol to communicate between two different hosts. It also uses Network Layer, a Layer 3 in Open System Interconnection (OSI) model, and the standard model of network programming.

A computer networking device which forwards data packets across a network toward their destinations, through a process of routing is known as Router. In the OSI layer, a third layer is used for routing. A router is positioned at any junction where one network meets another, and is most of the time as part of a network switch. Router is nothing but networking device in which different networks are connected to it with different IP ranges. These networks can communicate with each other although they are having different IP range configured. In this case router use routing protocol and allow to send data packets of one network to the destination in other network having different IP range. Routers route data packet from a LAN to another router, then next router, and so on until data packet is received at its target. Routers also allowing only certified machines to send and receive data into the LAN.

Here is how a router works or at least i think it does. Get some broadband connection like timewarner cable. Some offers gives u a free cable modem and router, and some others just give u a modem. Now the modem gives u the internet to your computer. This cable modem is connected outside to get the internet. So u plug in the modem to the router, which transmits a wireless signal. U know how your old psp  needs to connect your computer directly. Think that the psp connects without the wire. The router just converts the "signal" from the source into the air, instead of being transmitted by wire. In this way u can move more freely, in where your wires are incabale of letting you to go.

Basically let me explain it more clearly so a retarded person could understand

wire to outside
wire connect to computer
use modem to router
router give signal like antenna
its in the air!