Web2.0 enables rich user experiences, user participation, and dynamic content through technologies like Ajax and web standards. It provides users with capabilities for information storage, creation, and editing that were not available in static Web1.0 sites. Examples of Web2.0 include blogs, wikis, social networks, video sharing sites, and RSS feeds that encourage information sharing and user interaction. The document discusses key features that distinguish Web2.0 from Web1.0 and provides design recommendations for Web2.0 sites.