Web 2.0, overall, is a more user friendly view of the web that acts as a platform for networking and sharing ideas, not just a source of information. The term was used first at the O'Reily Media Web 2.0 Conference which described it as a business revolution because of the way the term changed the utilization of the web.
The benefits of web 2.0 are seen most in the business world where suppliers can offer quick and easy service to companies through pay services on the web making business more efficient and cheaper. In addition, with the networking capabilities of web 2.0 a company can start a buzz about their product through discussion boards, as well as, advertisements. Other benefits include being able to collaborate with branches of a company all over the world with the use of wikis. For the everyday person, web 2.0 means faster and better communication with friends or strangers. College and high school students aren't the only ones on facebook anymore, older people are joining and reconnecting with the people they grew up with.
While the benefits are many, there are also some cons to web 2.0. The ease with which you can connect with others allows some unsavory behavior. It is widely known that sex offenders often prowl sites like myspace or facebook to try and catch a young girl or boy in their web. Many parents fear web 2.0 because they don't like how easy it is for their children to meet strangers and they have little way of controlling their child's actions online.
For more clarification on what web 2.0 means here is a short video:
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