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CardMunchProfessional social network LinkedIn launched a new version of its CardMunch application for the iPhone today, which promises to help you make sense of all the people you meet during networking events.

The app allows users to take a photo of paper business cards collected from new and potential contacts. It then converts the information on the card into digital, usable text. The updated iPhone app actually takes that information and matches it with a person’s LinkedIn profile — giving you access to a their common connections, work history, education and more.

The app’s navigation has also been overhauled and split into three main screens: a card capture screen allowing you to snap a photo of a business card, a touchscreen-optimized contact list that mimics a virtual Rolodex, and a screen for each of your contact’s details and LinkedIn profiles.

CardMunch still allows for you to add business card information (and now LinkedIn info) to your iPhone address book. However, the new version also lets you add notes below each of the business cards scanned in while you wait for the card to get translated.

This is the first major upgrade of CardMunch since LinkedIn purchased the company in January 2011 for an undisclosed amount.

The move certainly makes sense for LinkedIn because it makes the company’s social network more valuable where it counts the most — in a real life business setting, where people are exchanging contact information and shaking hands.

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