Li-Fi is a technology that uses light from LED bulbs to transmit data wirelessly. It works by switching the state of LED bulbs on and off very fast in order to transmit binary code, with on representing 1 and off representing 0. The switching is too fast for the human eye to detect, so the bulb appears to be on continuously. Li-Fi has several advantages over traditional Wi-Fi including increased bandwidth and security. It can be used in applications such as traffic lights, aircraft cabins, underwater environments, and locations where radio frequencies are restricted. However, Li-Fi also faces limitations including inability to pass through objects and interference from other light sources.