Li-Fi is a wireless communication technology that uses light from LED bulbs to transmit data. It works by switching the state of LED bulbs on and off very fast, in a way imperceptible to the human eye. A photodetector converts the flashes of light into electrical signals to decode the transmitted data. Li-Fi could provide higher speeds than Wi-Fi and has applications in areas where radio frequencies are regulated or restricted. However, it requires line of sight between the light source and detector and may not be suitable to replace Wi-Fi for all use cases.