While Google Cardboard works with virtually any smartphone, Daydream will work only on smartphones with special sensors and recommended display type.
The company hinted on a feature called "Android VR Mode", which will debut with Android N and available on smartphones (with required specs) running the latest version of its operating system.
Albeit, the VR Mode is to enable users to navigate inside virtual reality, it also include series of optimizations that will improve apps' performance.
With Daydream homescreen to allow users access apps and content while using the headset; including special VR versions of YouTube, Street View, the Google Play Store, Play Movies, and Google Photos.
Google is looking up to third-party companies to build apps for Daydream, including gaming companies like Ubisoft and Electronic Arts.
Google also listed some hardware partners saddled with the responsibility of making Daydream-ready phones, which includes: Samsung, HTC, LG, Xiaomi, Huawei, ZTE, and Asus.
While smartphone will provide the computing power for Daydream, a version of Google's new VR headset and controller is required, which the company has shown a reference design. As with the Cardboard standard, partners can build on the Daydream design — though Google hasn't made available any guide like it did with Cardboard.