The p-n junction is the basic element of bipolar devices like diodes that allows current to flow easily in one direction. It is formed at the interface between p-type and n-type semiconductor materials. When a forward bias is applied, it reduces the potential barrier and allows a large diffusion current to flow. When a reverse bias is applied, it increases the potential barrier and only a very small reverse saturation current can flow. The p-n junction's rectifying property allows it to be used in applications like photodiodes, LEDs, and varactor diodes.