What most researchers agree on is that the very first functioning life would have had three basic components: a container, a way to harvest energy and an information carrier like RNA or another nucleic acid.
Szostak's earlier work has shown that the container probably took the form of a layer of fatty acids that could self-assemble based on their reaction to water (see video). One tip of the acid is hydrophilic, meaning it's attracted to water, while the other tip is hydrophobic. When researchers put a lot of these molecules together, they circle the wagons against the water and create a closed loop.
These membranes, with the right mix of chemicals, can allow nucleic acids in under some conditions and keep them trapped inside in others.
That opens the possibility that one day, in the distant past, an RNA-like molecule wandered into a fatty acid and started replicating. That random event, through billions of evolutionary iterations, researchers believe, created life as we know it.