I'm appealing for a clarification of this two most concern terms;
1.How bitcoin work.
2.Where bitcoin work.
Just to note, those two aren't terms in actual. You just asked a question using two simple sentences but, its okay to be confused and ask questions and I don't mean to discourage you in anyway, just have to right the wrong, thats all we are doing. When it comes to terminologies, we would be considering things like,
Hashrate (Deals with processing speed)
Sticky thread/Pinned posts (Threads that stay top in boards)
OP (Original post or poster)
Hodl (to hold)
ATM (All Time High)
Trying to keep it as simple as possible but those are terms.
About your question and I'll answer as I understand it in a way I hope you do understand
1. Bitcoin works just as every other currency do, as a medium of exchange being transferred from wallet to wallet.
2. Bitcoin works or operates on the blockchain through the Internet.