Li-Fi is a wireless optical networking technology that uses light for data transmission. It uses LED or fluorescent lights as transmitters and devices as receivers. Li-Fi transmits data through the visible light spectrum, allowing for larger bandwidth than other wireless technologies. It has advantages like high speed data transfer, secure communication, and no interference with other systems. However, its range is limited as light cannot pass through obstacles and it can be affected by external light sources. Potential applications of Li-Fi include use in areas where wireless connectivity is not allowed.