You could actually take out a specific word in your sentence and that is a large philosophical point that films try to make. It's the only work which begins with "e"
But as what the story is about:-
Sometime in the 21st Century man created AI which in turn (this is a really simple explanation) enslaved mankind. They used their vast knowledge on the human body to create a prison for them. A prison for their minds. Thus the Matrix was created. The Matrix uses the human body's natural electrical signals created by the brain, and the heat created by the body and combines this with a form of fusion (I am presuming Nuclear Fusion) to provide power to the Machines. Without the Matrix the Machines shouldn't be able to survive, but it looks like they have something up their sleeve
Oh, the Matrix is a computer generated program. Designed to imprison the mind in a dream world which doesn't exist. They as mentioned, they feed off the power created by the human bodies
Initially the Matrix was a perfect world, designed in very essence with perfection in mind. But due to the human minds inability to accept this perfect reality, they needed to redesign it (or He as I should say - this being the Architect). The Architect realised in his arrogance that the solution to this problem required a lesser mind (or a mind less bound by the parameters of perfection). From all evidence this lesser mind is the Oracle.
But this created a problem. Because the Matrix is now based upon "choice", an anomaly is accumulated over a period of time and it seemingly resides in one specific person. This anomaly can cause fluctuations in even the simplest equations from which the Matrix is built upon. The choice that the humans have is on a near unconscious level, which some people reject and most don't.
Because of this choice an illusion had to be created to fool the humans into thinking they were really free. When in fact, everything that is happening is all just another system of control. So the Prophecy was created, and from evidence thus far, it was the Oracle that did so. From what I can gather the prophecy told of a man born inside the Matrix who could change whatever he wanted etc etc (The Anomaly), and that he freed the first of the Zionites
. The system of control which is in play is carefully leading The Anomaly to the Source (the machine mainframe) where ironically, the Anomaly must make a choice. This choice as you should know is to either Reload the Matrix (let Zion be destroyed) and choose 23 individuals to restart the breeding process in a new Zion. Now this is the choice that the 5 Anomalies previous to Neo made and is why it is now in it's 6th Cycle. The other choice is to Re-Enter the Matrix without the Reload, which in turn should be the catalyst for a Cataclysmic System Crash killing everyone connected to the Matrix. Couple this with the destruction of Zion and there goes the Human Species in one quick swoop.
We are now at the point as to finding out what is now going to happen because Neo chose to save Trinity (Re-Entering the Matrix) instead of Reloading it as was expected of him.
Thats a very brief explanation of things. If you want details on the specific Characters etc etc, then that is alot of typing