What is the role of silver in C-41?
Hi, "silver" is still the light-sensitive part of C-41 (color neg) film. And development of the silver image is still a crucial step in the process.
I think that Rudi's explanation works best if you already understand how things work. Let me try to explain things at a simpler (?) level.
Here's basically how the magic of C-41 color works: the film is different from B&W in two ways, 1) it has essentially three different emulsion layers, each layer treated to be sensitive to a different color of light. 2) Each color-sensitive layer is loaded with so-called color couplers, which are roughly one-half of a colored dye molecule. Meaning that they are not actually colored dyes, but rather the first stage of making a colored dye. Note that each layer has its own specific color couplers which can only be "completed" into a specific color of dye.
Now here's the magic part. The color developing agent is special; as each molecule - the tiniest little bit possible - develops a bit of silver, the developing agent becomes oxidized. And this oxidized developing agent can fill in as the missing part of the colored dye molecule. Said differently, the color couplers in the film can combine with the oxidized color developer to form an actual color dye. So as each tiny bit of silver is developed, a tiny bit of color developer gets oxidized, and that tiny bit of oxidized developer almost immediately reaches a dye-coupler (in its own color layer) and the two combine to form a tiny bit of actual colored dye (which is the correct color for its layer).
After all this is done, the silver image is no longer needed, so it can be "bleached out" and removed. Hopefully you can follow what I've said. To me, the thing that is even more amazing than this process is that people actually figured out how to do this whole thing.