Li-Fi is a wireless optical networking technology that uses light-emitting diodes (LEDs) for data transmission. It can provide higher data rates than Wi-Fi and has advantages like highly localized coverage so data cannot pass through walls, lower energy consumption than Wi-Fi, and ability to use existing light infrastructure. Li-Fi works by varying the intensity of light from an LED to transmit digital data. A photo detector at the receiver converts light intensity variations back into an electrical signal and data. Potential applications of Li-Fi include use in aircraft, hospitals and other places where Wi-Fi is restricted.