The tantalizing aroma of bread baking in the bakery is due to a process called fermentation of baker's yeast, or Saccharomyces cerevisiae. These organisms have long been utilized to ferment the sugars of rice, wheat, barley, and corn to produce alcoholic beverages and in the baking industry to expand, or raise, dough.
Dry yeast available in the grocery store is a collection of dormant yeast spores. Once these spores are mixed into water and dough, the culture is active. To start this germination process and make the bread rise faster, the baker sometimes mixes yeast with water or milk before adding to the dough. 
The yeast's function in baking is to ferment sugars present in the flour or added to the dough. This fermentation gives off carbon dioxide and ethanol. The carbon dioxide is trapped within tiny bubbles and results in the dough expanding, or rising. Their usefulness is based on their ability to convert sugars and other carbon sources into ethanol in the absence of air (anaerobic), and into carbon dioxide and water in the presence of air (aerobic).
Trivia:
Is sourdough bread produced 
with baker's yeast?
[answer]