"Did you know that the First Matrix was designed to be a perfect human world, where none suffered, where everyone would be happy? It was a disaster. Some believe that we lacked the programming language to describe your perfect world, but I believe that, as a species, human beings define their reality through misery and suffering. The perfect world was a dream that your primitive cerebrum kept trying to wake up from." - Agent Smith
"What is the Matrix? Control. The Matrix is a computer-generated dream world, built to keep us under control" - Morpheus
The Matrix is a neural interactive program, used to blind people from the truth. The truth, being, that some point in the early 21st century, all of mankind was united and were excited after giving birth to "artificial intelligence". This then produced an entire race of machines. War against these machines, was upon the entire human race.
According to Morpheus, "We don't know who struck first, us or them. But we know that it was us that scorched the sky". This was due to the fact that the machines run on solar power, thus creating a defence for the humans against the machines. The matrix was then created to keep the people under control in fear that they would overreact to the current state of the "real world".
The first matrix, as Agent Smith stated, was technically a disaster. It was designed to be a perfect human world, a utopia, where none suffered. According to Agent Smith, happiness cannot exist without suffering as "human beings define their reality through misery and suffering". The perfect human world was unable to create realism about it and the people locked within the matrix were soon confused and the matrix had to be rebuilt. Apparently, the "perfect...