Will advanced virtual reality, similar to what was seen in the Matrix, be possible?
Accelerating progress in key areas of technology - Artificial Intelligence, Computer Hardware, Robotics, Genetics and Nanotechnology - will lead to a Singularity. The term comes from physics, where the ability to predict what happens at the center of a black hole breaks down. Progress in these areas will create a computer intelligence that is more intelligent than humans within 10 to 20 years, and the development of virtual environments where human minds can be uploaded or interact through brain-computer interfaces.
A computer entity that is more intelligent than humans leads to the development of an even greater computer intelligence in a feedback cycle - an intelligence explosion - and the creation of superintelligence, beyond which accurate predictions break down: the Singularity.
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Chris K. Haley, NestedUniverse.net. 
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