And the other one? Virtual Reality? How does that work?

Virtual Reality (VR) goes even one step further than AR! It simulates a whole environment via a computer.

That means, users can enter fictional worlds or travel digitally around the globe.

Most VR environments are visual and auditory, but odor and touch effects are increasingly being added for a multisensoric experience. The term VR was probably coined by internet pioneer Jaron Lanier, founder of VPL Research in 1989. The company built early VR systems in 1980. It is also the first VR company to go bankrupt – quite a sad fun fact.

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How does Augmented Reality work on mobile?
So what's the difference between Augmented Reality and Virtual Reality?