How does Augmented Reality work on mobile?

Todays mobile devices are equipped with the necessary technologies for Augmented Reality to work optimally: Amazing cameras, location services and of course, great operating systems.

That makes it easy to integrate Augmented Reality into our daily lives. From navigation to translation, the use cases for AR are growing exponentially. It has become a really useful and convenient tool as we carry our phones with us all the time.

Hence, AR is radically shaping the way people interact using their mobile devices on social media and with brands – what does the future hold?

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