Is it possible to install and run software that was designed for the raspberry pi 1 on my raspberry pi 2? I plan to install this software along with arch Linux soon and I would just like to know if it is possible to install it or not. The software I am interested in is this. I would really appreciate it if any of you could help me out here. Also if it is not possible to install that particular software is there any similar ones you could recommend?
Yes, in fact all of the software from Raspbian except the kernel falls into this category (i.e., the entire userland). It's compiled for ARMv6 so it works on all models, because ARMv7 is backward compatible.
As to whether that amounts to sub-optimal performance on the Pi 2, you would have to test to find out. I believe in some cases it certainly does, but generally it does not if you are using flags appropriate to the BCM2835 (
arm1176jzf-s and hard float ABI). If you are compiling directly on Raspbian this will be the case by default.