Step 1: After implantation, finger-like projections called chorionic villi appear on the trophoblast part of the blastocyst. Step 2: The uterine tissue and maternal blood vessels surround these villi. Step 3: Chorionic villi and uterine tissue combine to form the placenta. Step 4: The placenta facilitates the exchange of nutrients, gases, and wastes between the mother and the embryo and acts as an endocrine tissue by secreting hormones like hCG, progesterone, and estrogens.