The motherboard is the central component of the computer that connects and powers all other components. It holds chips and circuits that allow communication between components like the CPU, RAM, graphics card, and hard drive. The hard drive stores the operating system and programs, while the CPU carries out instructions to perform basic functions. Other key components include the power supply, which converts power for components, and RAM for temporary storage when running programs. Peripherals like keyboards, mice, and monitors allow interaction with the computer.