Web 2.0 refers to developments in web technology that emphasize collaboration and sharing between users. It utilizes technologies like blogs, wikis, RSS, podcasts, and AJAX to allow rich content to be easily created and shared. Key characteristics include using the network as a platform, continual updates, open sharing of content, and user tagging of resources. New tools of the social web can transform communities by allowing rich content to be collaboratively created and embedded in various sites.