RIP v2 is an improved version of RIP v1 and shares the following features:

• It is a distance vector protocol that uses a hop count metric.
• It uses holddown timers to prevent routing loops – default is 180 seconds.
• It uses split horizon to prevent routing loops.
• It uses 16 hops as a metric for infinite distance.

RIP v2 provides prefix routing, which allows it to send out subnet mask information with the route update. Therefore, RIP v2 supports the use of classless routing in which different subnets within the same network can use different subnet masks, as in VLSM.

RIP v2 provides for authentication in its updates. A set of keys can be used on an interface as an authentication check. RIP v2 allows for a choice of the type of authentication to be used in RIP v2 packets. The choice can be either clear text or Message-Digest 5 (MD5) encryption. Clear text is the default. MD5 can be used to authenticate the source of a routing update. MD5 is typically used to encrypt enable secret passwords and it has no known reversal.

RIP v2 multicasts routing updates using the Class D address 224.0.0.9, which provides for better efficiency.