How Do Blueprints Work?

In their basic form, Blueprints are visually scripted additions to your game. By connecting Nodes, Events, Functions, and Variables with Wires, it is possible to create complex gameplay elements.
Blueprints work by using graphs of Nodes for various purposes - object construction, individual functions, and general gameplay events - that are specific to each instance of the Blueprint in order to implement behavior and other functionality.
Let's look at each of these use cases by an example.