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The Sacred World, also known as Valissa, or the in between place, is a parallel plane of higher consciousness where it is possible to achieve inner clarity and a greater perception of things that even trancend death itself. The exact nature of the Sacred World is currently unknown as it was never seen in the movie itself.
The Var Dohr Sacred Ritual of the Nordic Coven transports the subject's consciousness to the Sacred World. When they return to their body, they acquire heightened spiritual comprehension along with, occasionally, augmented abilities.