Li-Fi is a wireless optical networking technology that uses light-emitting diodes (LEDs) for data transmission. It was invented by Harald Haas at the University of Edinburgh in 2011 as an alternative to Wi-Fi. Li-Fi transmits data through illumination by taking the fiber out of fiber optics and sending data through a LED light bulb. It provides higher speed, more secure data transmission than Wi-Fi as light cannot pass through walls. Potential applications of Li-Fi include use in traffic lights, hospitals, airplanes, and as a means of wireless internet from street lamps. However, challenges remain around interference from external light sources and the need for line of sight transmission.