Each letter is represented by a number modulo 26. (Often the simple scheme A = 0, B = 1, ..., Z = 25 is used, but this is not an essential feature of the cipher.) To encrypt a message, each block of n letters (considered as an n-component vector) is multiplied by an invertible n × n matrix, again modulus 26. To decrypt the message, each block is multiplied by the inverse of the matrix used for encryption.
The matrix used for encryption is the cipher key, and it should be chosen randomly from the set of invertible n × n matrices (modulo 26). The cipher can, of course, be adapted to an alphabet with any number of letters; all arithmetic just needs to be done modulo the number of letters instead of modulo 26.