NGSIv2 is an updated version of NGSIv1 that provides a more simplified and RESTful API for managing entities and their attributes. Key improvements in NGSIv2 include simplified URLs and payloads, support for native JSON data types, improved filtering capabilities for queries and subscriptions, and features like geolocation, datetime attributes, and transient entities. NGSIv2 aims to make common operations easy while still supporting complex functionality through a more developer-friendly design.