Hearing happens because of sound waves that enter your outer ear.
The waves are channeled down the auditory canal where tiny hairs and earwax grow. Once you reach the end of the auditory canal there is the middle ear which is comprised of three things: the eardrum and three small bones. These three pieces are called the hammer, anvil and stirrup. Sound waves hit the eardrum and move the hammer. The hammer moves the anvil which in turn moves the stirrup and the vibrations are transmitted into your inner ear.
Significant hearing loss can result from any interference inside the middle ear where amplification of sound occurs.
The inner ear consists of the cochlea and the nerve of hearing. Sound waves are converted into nerve impulses that travel to the brain via the movement of tiny hair cells. The brain then permits you to hear.