In the year 1999, the Internet suffered it's first financial crash. Many companies selling products and services on the Web were not living up to sales expectations. This was known as the Dot Com Bubble. There were many reasons why this happened, but perhaps the two most important reasons were a combination of slow connection speeds and too much optimism. Very few people had fast internet connections and many people thought the Internet was "just a passing fad". But we know now that the Internet is not a fad. So what happened? Web 2.0 happened!
What is Web 2.0? It's very hard to say. It's just a phrase to describe a transition from the pre-existing state of 'Web 1.0', which was slow, static, and unusable, to a new, 'second web', which was faster, more dynamic, and more usable for the average person. How did these things happen? Easy. Broadband modems enabled sites like video-streaming YouTube to become possible. Better design and development practices enabled social media sites like MySpace and then Facebook to attract hundreds of millions of users. Finally, search engine technology improved on sites like Google where people could actually find the information they were looking for.