Chakra is the life energy that is produced by every individual to some degree, composed of physical and spiritual energy. Physical energy is collected from every cell of the body and can be increased through training, stimulants, and exercise. Spiritual energy is derived from the mind's consciousness and can be increased through studying, meditation, and experience. Chakra is normally not visible unless it is highly concentrated or manifested in large amounts.
You've become capable to use Chakra on the same level as an Academy Graduate, with the knowledge of basic Ninjutsu, Genjutsu, and Taijutsu.
You can use Chakra to reinforce yourself to become stronger, faster and more resistant. You gain an Elemental Affinity of your choice with a C-rank technique in that elemental affinity, and knowledge in how Jutsu is made through experience in Chakra Molding and familiarity with Chakra theory. With study and experience, you can use all 5 elemental affinities.