Li-Fi is a wireless optical networking technology that uses light-emitting diodes (LEDs) for data transmission. It is a subset of optical wireless communication that allows for high-speed communication in a manner similar to Wi-Fi. Li-Fi provides higher speeds, greater security, and does not cause any interference with other wireless networks. The document discusses how Li-Fi works using visible light spectrum and LEDs for transmitting and receiving data. It also outlines some advantages like green technology and availability of lighting as hotspots, as well as disadvantages such as line of sight requirement and inability to work in darkness. Potential applications mentioned are underwater communications and location tracking using LEDs.