Chapter 1 of 'Web 2.0 and Social Media for Business' introduces Web 2.0, a term developed from a 2004 conference, highlighting its role in user participation and collaboration online. It outlines the evolution of the internet from ARPANET to a vast network of over 22 billion devices expected by 2020, emphasizing the importance of social media and various web applications. The chapter discusses how these technologies facilitate communication and interactiveness through platforms like Facebook, YouTube, and blogs.