League Of legends Hextech crafting system explained
UPDATE: Sorry for the crappy video on the explanation, in order to get essence you have to break the shards down. For example blue shards come from champion shards. You use the essence to upgrade the item permanently, even if you own the champ you still have the chance of obtaining the same champion shard or skin shard. But it can be rerolled and even if you have that skin or don' own the champ you can break it down too. You get Orange essence through Skin shards and ward skins, the higher the rarity of the skin like say a legendary skin like omega teemo are about 1560 Orange essence to make permanent. Gemstones are used to either make the Hextech Annie skin which you need 10 of or use 1 to make a key and chest. Each week you can earn up to one chest, so in total you can get up to 4 chest with 4 chances or getting skins, but in order to get these chest you either need to get a s- or s+. Being in a group greatly increases your chances of getting key fragments. Say your friend reaches level 5 on a champion in a match and you are in that pre made group everyone gets a chest. Key fragments are given out every so often when you win, remember being in a group and winning greatly increases your chances of getting key fragments.
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