Final answer:
A virtual world is an online, computer-generated environment where multiple users interact, often through avatars. It may include elements such as its own economy and allows for user interaction and entrepreneurship, with some people earning real money through virtual activities. Virtual reality is a related but distinct immersive experience through technology.
Step-by-step explanation:
A virtual world is an online environment that can be accessed by multiple users who can interact within a computer-generated universe. These users can create avatars, which are their digital personas, to explore, interact, and participate in activities within this world. Virtual worlds are often designed with their own rules, physics, and economies. In some cases, such as with MMORPGs (Massively Multiplayer Online Role-Playing Games), these worlds provide opportunities for entrepreneurship through the buying, selling, and management of virtual goods and services for real-world profit.
Examples of virtual worlds include games like World of Warcraft, Final Fantasy, and Second Life. The latter is particularly notable as it does not have a structured end goal or 'winning moment', but instead focuses on the creation and social interaction aspects. People spend considerable amounts of time and sometimes real money to enhance their presence within these digital realms. The concept of virtual economies is significant, as real monetary value is often attributed to virtual items within these worlds.
Virtual reality (VR) is related but distinct, offering immersive experiences usually through wearable technology. It allows users to experience simulated environments that can even simulate physical presence in places across the real or imaginary universe.