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I'm only like a 10 year old trying to explain it to a 5 year old, so anyone feel free to correct me where I'm wrong:
Don't mistakenly associate the word hologram with the Matrix or a StarTrek holodeck. It's a mathematical representation of something inside something else. It's like a video playing on your screen: it's there, but it doesn't take place on your actual screen. It also hold more or different "dimensions" than your screen is (you're watching a 3d videorecording on a 2d screen).
Dimensions are a though concept. It's not just about left right up down "and time being the fourth dimension" - it's a mathematical system that goes over the head of many. For now, consider them as "variables of a calculation", where the calculation is the system.
Then, what does (roughly) means:
Stringtheory is a (albeit debated) theoretic framework that explains all the different particles and behaviour.
Strings are 1-dimensional objects.
They run into a lot of problems explaining all the stuff happening in the universe, what happens in black holes (look up black hole entropy for example) and gravity and such.
In order to explain part of the stuff happening they need 10 dimensions to make the math work.
In order to explain a different part of the stuff happening and work with string theory, they have 1 dimension to make the math work
They have managed to make the math between these two systems correspond to eachother. So they can now use the 10 dimensional calculations and place these "inside" the 1 dimensional calculations.
This gets them a step closer to making the stringtheory as a whole "work".
Concluding: it doesn't mean we are living a lie or that we're in some sort of fictional world that doesn't exist. It means they have managed to put a 10-dimensional framework inside a 1-dimensional framework, like putting a video on your screen.
Source: I used to be a physics teacher, quit the field and completely switched careers - so I'm not very deep into this. I'm pretty sure there are people around here that can correct and improve my attempt to explaining this.
Edit WOW, thanks stranger for the Gold! I didn't expect this to blow up like this.. Glad to see so many of you got somewhat of an understanding of this, and I really hope I didn't cut too many corners with my explanation...
Edit 2 For those wondering if I became a stripper or a congressman: I somehow became a photographer, so I can still work with people without being Roberta Sparrow
EDIT 3 It might be a cliché, but for those who care, I really feel like adding something to this: I'm really moved by all the responses I got - I stepped far away from physics and education 5 years ago, as I simply got too much entangled with physics, and quantum physics in particular. I'm used to seeing 30, or even 50 students, but 3000 people? Mind blown. Like I said in the thread, it really has gotten me to think about the choice I made back then. I'm not going back to physics, but apparently a lot of people are still eager to learn. Thank you reddit, you've made my day, and given me something to think about in return.
Also I feel like I need to point out that for ELI5's sake my explanation is incomplete and even partly inaccurate - this video was posted that explains the 10-dimensions pretty good, and for example Stephen Hawking has some really good books with proper explanations without being all physicistical. Good luck!
So if we are connected to everything on a subconscious level then our perception of reality is a bit like a visual processor determining the formation of random molecules into a whole and perceived person. If this idea is expanded outward then it also implies that all elemental and natural contacts are in fact connections forged with the essence of that object, be it a rock, a tree or a pond. We access all the information we inherently know about said object, creating it as a "real thing" in our perceptions of time and space. Since these things are forged on such a delicate level we are completely unaware of the transfer of information from a structural energy base?