The DigitalOcean API has been rewritten from the ground up for version 2, which offers improved features such as a truly RESTful API, OAuth applications, and slugs for referencing sizes and regions. The new API also includes pagination, expanded API coverage including IPv6 actions, and allows users to create and authorize API tokens for authentication. The public beta is now available for testing and feedback, with the goal of refining the direction of version 2 based on community input.