We can translate it quite easily into Javascript, if you're familiar with that:

> What's x represent?

In JS this would be written as the variable 'x'

> What's y represent?

In JS this would be written as the variable 'y'

> What's the backslash represent?

In JS this would be written as the keyword 'function'

> What's the period represent?

In JS this would be the keyword 'return', or as '=>' using function arrow notation.

For example, '\ x (\ y . y )' (AKA zero) in JS would be:

    function(x) {
      return function(y) {
        return y;
      };
    }

Or, with arrow notation, as simply 'x => (y => y)'

The number one would be 'x => (y => x(y))'

The number two would be 'x => (y => x(x(y)))'

And so on: we represent the number N as functions taking two arguments, which apply the first argument to the second argument N times.

Lambda calculus functions can only take one argument at a time, hence we need two nested functions in order to take two arguments. Javascript functions can take more than one argument, so we could do this instead '(x, y) => x(x(y))'

The argument names are arbitrary; here they're 'x' and 'y', but we could use 'foo' and 'bar', 'hello' and 'world', or whatever.

If you want a more intuitive idea about "how" these work, and how to use them, then you can think of each number N as a loop performing N iterations. The first argument is the 'loop body' or 'stepping function', the second argument is the initial value/accumulator.

For example, if we want to add two numbers A and B, which are represented in this way, we can make a new number (AKA function taking two arguments AKA loop) which runs the A loop, with the result of running the B loop as its initial value (using the same 'step' each time), e.g.

    \x. \y. A x (B x y)

Or, in JS notation and more descriptive variable names:

    add = A => B => step => init => A(step)(B(step)(init))

We can multiply A and B by looping: start with zero (AKA init), then add B on to it A times:

    zero  = step => init => init

    times = A => B => step => init => A(add(B))(zero)(step)(init)

Notice that 'times' doesn't use its 'step' and 'init' arguments directly, they're just passed straight into the result. That's just busy-work, so we can simplify it away (this is called "eta reduction"):

    times = A => B => A(add(B))(zero)

We can pass in anything we like as our 'step' and 'init' arguments. Here's how to recover native JS numbers:

    churchToInt = A => A(x => x + 1)(0)

Encodings of other data structures work in a similar way:

- We write a function which takes in one function for each 'case' ('successor' or 'zero', if we're encoding numbers using Peano's axioms; 'true' or 'false' if we're encoding booleans; 'nil' or 'cons' if we're encoding a list; etc.)

- We return the argument corresponding to the value we've encoded (e.g. an encoding of zero returns the argument corresponding to zero; an encoding of true returns the argument corresponding to true; etc.)

- If we have a composite data structure, we first apply that argument to each of our nested values (e.g. a 'successor' value contains another number (its predecessor), so the argument corresponding to successor gets called with that value)

Some examples:

    // Booleans have two cases, neither contain any sub-values
    true  = T => F => T
    false = T => F => F

    // This only has one case, but it contains three sub-expressions (it's a triplet)
    // This is polymorphic in the type of 'red', 'green' and 'blue', but they could be
    // e.g. numbers
    colour = red => green => blue => x => x(red)(green)(blue)


    // A 4-tuple. If A, B, C and D are booleans then it's a nibble
    nibble = A => B => C => D => x => x(A)(B)(C)(D)

    // A pair. If HIGH and LOW are nibbles then it's a byte
    byte = HIGH => LOW => x => x(HIGH)(LOW)

    // Binary trees with values in the leaves 
    leaf = VALUE => node => leaf => leaf(VALUE)
    node = LEFT => RIGHT => node => leaf => node(LEFT(node)(leaf))(RIGHT(node)(leaf))

    // Some values, encoded using the above
    emptyNibble = nibble(false)(false)(false)(false)
    fullNibble  = nibble(true)(true)(true)(true)

    emptyByte = byte(emptyNibble)(emptyNibble)
    fullByte  = byte(fullNibble)(fullNibble)

    red   = colour(fullByte)(emptyByte)(emptyByte)
    white = colour(fullByte)(fullByte)(fullByte)