Bluetooth is a wireless technology developed in 1998 by five companies to provide short-range wireless connectivity between digital devices. It allows up to eight devices to communicate within a range of about 10 meters in a personal area network. Applications of Bluetooth technology include connecting laptops, wireless headphones, keyboards, mice, and other peripherals. It provides a low-cost way to share data and voice and create instant personal area networks, though it has disadvantages like low data rates and lack of security.