Bitcoin 2.0 refers to a new generation of blockchain technologies that aim to enhance the original Bitcoin framework by introducing advanced features. While Bitcoin itself primarily functions as a digital currency, Bitcoin 2.0 projects focus on offering additional functionalities such as smart contracts, decentralized applications (dApps), and various forms of asset creation.

Smart contracts allow for programmable agreements that execute automatically when certain conditions are met. This capability can revolutionize industries by facilitating trustless transactions without intermediaries. Furthermore, Bitcoin 2.0 encompasses improvements in scalability, security, and user experience.

These projects often leverage different consensus mechanisms, reducing energy consumption and enhancing transaction speeds. Overall, Bitcoin 2.0 seeks to broaden the use of blockchain technology beyond just currency transfer, providing a foundation for new applications across multiple sectors, including finance, supply chain, and governance.