I suspect that a full answer to that question would necessitate the 
writing of several books. I don't fully understand what's going on in 
the background but I'll have a go at explaining my take on it.

The Ruby interpreter creates a "runtime environment" in which to hold 
the objects.

Since Rails uses MVC architecture, your main components are:

The Model - Database link via ActiveRecord, and ancillaries.

The View - Collection of whatever pages and templates you're using, 
requested when necessary by the controller, and associated JS & media).

The Controller - A series of methods interlinked by "routes" which ties 
together the view and model and determines the progression of events.

I reserve the right to be wrong!

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