The Matrix is a holographic system that shapes realities around you based on your own feelings, fears, desires, expectations, beliefs, emotions and thoughts. It is a system of control based on thought reading, on the Pavlovian association of ideas and on the manipulation of language and doubletalk.
It manipulates - and sometimes distorts - present society values (like money, sex, success, fame, intellectual recognition, and professional fulfillment, among others) in order to generate in your mind "dreams" that you have never imagined you'd have.
It tries to deconstruct your own beliefs and turn them against you, by using elements that have a strong mathematical similarity with the elements that are comprised in your beliefs.
It is a system apparently designed to suppress from your heart the true feeling of Love, so you will not have Awareness of the Universe's Consciousness.
To become Free or "unplugged" from this Matrix means to become Aware of the True Universe around you. To do this, you gain insight from Knowledge. You then become Aware of the Oneness.