The Virtual world (or V-world) was a realm used by holoband users in the Twelve Colonies prior to the First Cylon War. V-world allowed access to a wide variety of landscapes, games, and activities, all digitally created constructs.
In the years before the Fall, "holobanding" was a popular pass time on the Twelve Worlds. Developed by Graystone Industries of Caprica, holobands were the conduit through which users gained access to the Virtual world - a digital construct where users' avatars were able to access a myriad of licensed material. The pornography sites were the first to license holoband technology, creating virtual scenarios and locations where sexual activities could take place, free of real world concerns such as disease, pregnancy or even fatigue (CAP: "Pilot", "The Imperfections of Memory").
Holo cafes arose in places like Caprica City where users could access the Virtual world in restaurant or coffee shop like settings which boasted unlimited bandwidth, multi-port access, planetary interaction and appealing credit terms (CAP: "Gravedancing", "Know Thy Enemy"). 
Out of the technology, underground sites arose, in which users hacked the holoband code to create meeting places and games such as the "V-Club" and New Cap City. Users caught accessing hacked sites were subject to criminal fines under Caprican law of up to 352 cubits (CAP: "Pilot", "Gravedancing", "There is Another Sky", "Know Thy Enemy").
The Virtual world - primarily its pornographic and illegally hacked sites - were attributed to a moral decline in Colonies by certain pundits, including Baxter Sarno. Groups, such as the monotheist terror organization Soldiers of the One also objected to the Virtual world, targeting holo cafes in Caprica City (CAP: "Gravedancing", "Know Thy Enemy", "False Labor").
Virtual Graystone Industries
Initial access to the Virtual world from Graystone Industries' holobands included a welcome scenario in which holoband inventor Daniel Graystone introduces the user to the menu system. This scenario takes place in "Virtual Graystone Industries", a digital recreation of the company's Caprica City campus. Though the likeness to Graystone was generally convincing, of his virtual counterpart, Daniel Graystone said it was "not even well rendered" and feared it would frighten small children (CAP: "Know Thy Enemy", "False Labor").
Among the suggested virtual locales accessible from the menu were "The Seas of Sand" on Gemenon, Golf, and Caprican Nightlife. The illegally hacked sites were not accessible from the menu system (CAP: "Know Thy Enemy").
- The Virtual Graystone Industries bore a strong resemblance to the interior hallways of the Cylon baseship seen in Battlestar Galactica, with datastream graphics appearing in a stripe along one wall.
V-Match, an online social networking and dating site, provided access to virtual activities and dates for holobanders. Among those accessible from the V-Match site were a V-Club Pass, Dinner Cruise, Flight Simulator, Message for Two, Hiking, Beach Picnic and more... (CAP: "The Imperfections of Memory").
- It's not clear how V-Match, a seemingly legitimate social networking site, allowed Philomon and "Rachel" to access the V-Club from its website as the pilot episode of Caprica established it as an illegal hacked site.
The virtual Flight Simulator allowed users the opportunity fly real world-accurate atmospheric Viper jets. Though piloting skills were required for the simulation, users could simply tweak their avatar's skill sets in order to become Viper pilots. Still, the simulation - set over oil rigs in a Caprican sea - even depicted accidents and crashes, though with no fatalities (CAP: "The Imperfections of Memory").
The V-Club is an illicit virtual reality club, not the only one of its type, accessed by the holoband.
At the V-Club, the rule is "no limits"--group sex, drug use, and violence (albeit virtual) dominate. It is frequented by many people, especially teenagers looking for somewhere to indulge themselves in all sorts of unsanctioned activity.
Zoe Graystone and Lacy Rand originally attended for some of these activities, but they later came to view the V-Club as a sign of the Twelve Colonies' descent into hedonism, decadence, and ennui. Zoe later creates a separate chamber that can be accessed from the V-Club, where she interacts with her holographic avatar, Zoe-A.
Sometime after the Maglev 23 bombing, Lacy brings Daniel Graystone to the V-Club, showing him such areas as "the kill zone" (where one can "shoot their friends, shoot the Prime Minister, shoot themselves, whatever"), the fight room, group sex dens, drug dens, and an area for virgin sacrifice to Hecate, as well as mentioning "the really gross stuff" beyond. She then gives him access to the chamber and to Zoe-A (CAP: Caprica pilot). This chamber and other sections of the V-Club become Zoe-A and Lacy's primary meeting place. Zoe-A also uses the club to arrange her first face-to-face date with Philomon (CAP: "Know Thy Enemy").
New Cap City
New Cap City was a virtual recreation of Caprica City, nearly identical to its real life counterpart, but featuring a darker atmosphere and violent, gangster-style game play.