RIPv2 supports Variable Length Subnet Masking (VLSM) which allows more efficient IP address allocation. It maintains backward compatibility with RIPv1 routers in a network. RIPv2 uses multicast (address 224.0.0.9) instead of broadcast to communicate with RIP neighbors, reducing unnecessary traffic on all network devices. Kerberos authentication is not used by RIPv2, and the Hello Protocol is used by OSPF, not RIP.