Bluetooth is a short-range wireless technology that allows devices such as phones, headphones, laptops, and printers to connect and exchange data within around 10-100 meters. It was developed in 1994 by five companies to create a standard for linking mobile devices wirelessly using the 2.4GHz radio band. Bluetooth includes a small computer chip that handles linking devices, security functions like authentication and encryption, and allows for data transfer speeds of up to 1 Mbps between paired devices.