Over the past two years or so there has been a huge buzz around the idea of web 2.0, and what it means for businesses around the world. It has become fashionable for companies to upgrade their sites to be web 2.0, and there are consultancy firms who advise businessmen about way s in which they can increase their presence in the brave new world of the Internet. The only thing about all the hype behind Web 2.0 is that very few people actually know what the whole concept actually is beyond shiny logos and minimalist design.

The central idea behind web 2.0 appears to be the idea of having a two way process of conversation between user and publishers, and for the website to better reflect what the user community wants.

This has led to a whole raft of websites that are the equivalent of an online community where the users are relied upon to provide the content for the site, while the publisher provides a framework with which to express themselves.

The central idea of a web 2.0 process is the web as a service, which goes against the conventional wisdom of many businesses. The reason why this is the case is that for a web 2.0 idea to work properly, it must be central to the business model. The business must be in the content that is provided through the web service that allows its production, but there are few bricks and mortar businesses where this concept can apply.

The idea of a bank offering a web 2.0 service is ludicrous; however it would be possible for a user community to act as a bank in providing community loans, being empowered to do so through an online web service provided by a web 2.0 framework.

A conventional record company with expensive production standards could not become a web 2.0 music portal because it would create inequality. On the other hand, a web based music promotion platform could become a record company as Myspace has done.

Much of the content of Friends Reunited has been generated by the users, but it is emphatically not a Web 2.0 website because unlike Face Book, users are not empowered by their content, and are instead forced to pay twice to use the service – once in the time that they take to add content to the database, and once if they want to access it.

Web 2.0 is about sharing. It is a lot more than putting a shiny logo and design on a website and implementing Google Maps functionality. It is about providing a framework for creativity and sharing, and it is about starting your business from the ground up, not by trying to be cool and engaging with the kids thanks to a misspell domain name.

However, the Web 2.0 phenomenon of vast prices being paid for communities is testament to the fact that the old media simply doesn’t get what it is all about. The chances are that Facebook will be sold later this year, and if the new owners decide to monetize it though a paid subscription, all the users will leave, and the multi billion dollar investment that it cost the buyer will evaporate just as fast.