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What is Web 2.0?

What does web 2.0 really mean? When I first heard this phrase, I thought that Web 2.0 is the newest version, as for softwares, if you have version 1, 1.5, 2.0, is it an update of some kind? Or is it an Era? Tim O’Reilly is generally credited with inventing the term, according to him

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