While the machines have taken over the world, the city of Zion still remains as the last refuge of free humans. Morpheus and his crew have taken to hacking into the Matrix and freeing those who are deemed ready. Their understanding of the Matrix enables them to bend its rules, granting them superhuman abilities. Morpheus warns Neo that death within the Matrix also kills the physical body, and that the Matrix is patrolled by powerful computer programs called Agents that are tasked with eliminating threats to the system, while machines called Sentinels search to destroy humans in the real world.
Neo’s prowess during virtual combat training lends credibility to Morpheus’ belief that Neo is “the One”, an especially powerful human prophesied to free humanity and end the war.