Recently the much-loved app Instagram has launched an update, fixing the interface we didn’t love of version 2.0, and adding some other features, too.

If you don’t have it already on your iPhone, you should. This free app is a simple way to make awesome photos in just a few seconds.

(Again, if you don’t have it, you should: get it from the App store)

Users can snap a photo then pick from one of several filtered effects or tilt-shift blur transform everyday photos into works of art. You can then share them easily and quickly, and see other photos from your friends and folks around the world.

All filters are a hundred percent custom designed, and the linear and radial tilt-shift blur effects for extra depth of field. You can instantly share via Facebook, Posterous, Twitter, Flickr, Tumblr, and Foursquare, and you can unlimited uploads to do it!

Get all your friennds on board; it is easy to interact, give and receive likes and comments, and works with all iPhones. It also has full support for the front/back cameras on the iPhone 4.

The new features include Lux, a new way to make your photos even better (more below), another filter, and a better design. You can also now change your profile photo straight from your profile page, and tap on push notifications to go straight to the photo.

Lux is a great addition to the app. This brand-new photo processing tool fixes l0w-contrast and underexposed shots, and can be combined with any of your top Instagram filter photos.

The new filter that has been introduced is dubbed Sierra, bringing a calm, ambiance to your photos with a touch of retro.

Another perk to the update is the change in the interface. Version 2.0 was a bit of a mess – which comments and reviews will tell you – and now it has been cleaned up for the better. There is no longer a “share” button in the middle of the home screen, and the icons are more discreet, making for a less invasive workspace.

Notifications have also been updated. Users now will receive an alert for touch notifications when someone comments or starts on one of your photos. If you swipe it, it will take you right to the photo.

Finally, there’s a nice touch regarding notifications. Now, when somebody stars or comments on one of your photos, swiping the resulting notification takes you direct to that photo.

Overall? We love it. And whether you already have Instagram or not, you’ll definitely be keen on the update.

Get it from the App store for free!