Research has shown that a signal received by a neuron travels through the dendrite region, and down the axon. Separating nerve cells is a gap called the synapse. In order for the signal to be transferred to the next neuron, the signal must be converted from electrical to chemical energy. The signal can then be received by the next neuron and processed.
Warren McCulloch after completing medical school at Yale, along with Walter Pitts a mathematician proposed a hypothesis to explain the fundamentals of how neural networks made the brain work. Based on experiments with neurons, McCulloch and Pitts showed that neurons might be considered devices for processing binary numbers. An important back of mathematic logic, binary numbers (represented as 1's and 0's or true and false) were also the basis of the electronic computer. This link is the basis of computer-simulated neural networks, also know as Parallel computing.