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Well, the forum explains clearly how it is done, but maybe not so evident for everyone how it works and I understand that is what you want to know.
The way it works: the Kindle is able to run programs from the main memory BUT only those programs that are digitally signed by Amazon. The kindle is able to check if the application is really made by Amazon.
What you basically do in the jailbreak, is this: add an extra certificate to the Kindle, allowing the programs that are digitally signed by the designers who publish there programs on this forum to be accepted by the Kindle.
This way you can get extra functionality to your Kindle.
I hope is an answer to your question.
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