Li-Fi technology uses visible light communication (VLC) to transmit data using LED light bulbs. It can provide much higher bandwidth than Wi-Fi and does not experience the same interference issues as radio waves. Li-Fi works by varying the intensity of LED bulbs faster than what the human eye can detect to transmit digital signals. A photodetector converts the light signals into an electrical signal to transmit data to devices. Li-Fi has advantages like larger bandwidth, higher efficiency, and more availability compared to Wi-Fi, though connectivity issues may occur when devices are moving or in shadowed areas. Potential applications of Li-Fi include use in hospitals, vehicles, traffic lights, and street lamps.