Li-Fi is a wireless communication system that uses light from LED bulbs to transmit data. It works by varying the intensity of LED lights faster than the human eye can see to encode binary digits. Li-Fi provides wireless internet connectivity through visible light and has several advantages over traditional Wi-Fi, including much higher data densities and speeds up to 1 Gbps. It could be used in applications such as hospitals, airplanes, and underwater where radio frequencies face interference issues.