In July of 1753; in the town of Petit Andelys, France; Jean Pierre Blanchard was born. He would later in 1785 make the first hot air balloon flight over the English Channel (accompanied by an American Physician).
Hot air balloons have been around for a few centuries. The reason for this is the simple principle they work off of: hot air rises above cold air.
There are several parts to a hot air balloon, but the thing that makes it rise is the burner. The burner is similar to the candle in a paper lantern; in that it heats the air inside the envelope (the large bag above the basket where passengers stand). The envelope has parachute valves at the top, to control the release of hot air so that the driver has control over height and direction. The skirt is the funnel for the heat to run into the envelope. The burners generally run on propane gas as fuel.
To rise, the balloon's lift from the flame must overcome the weight of the basket and balloon itself. To stay still in elevation, the weight and lift must be equal. And to fall, the weight must be greater than the force of lift.