How does the Borg work?

Could you elaborate on the operational mechanisms of the Borg, specifically with regards to its functionality and how it interacts within its designated environment? I'm curious to understand the inner workings of this advanced system, from its CORE principles to its interactions with external entities. Are there any specific algorithms or protocols that drive its actions? Additionally, how does it adapt and evolve over time to maintain its effectiveness? A detailed breakdown of its operation would be greatly appreciated.