Li-Fi technology uses visible light communication and LED lights to transmit data wirelessly. It provides several advantages over traditional Wi-Fi such as better security, higher speeds, and an unlicensed spectrum. Li-Fi is based on using light from LED bulbs to transmit data and can support data rates above 1 gigabit per second. While it has limitations like inability to pass through walls, Li-Fi has potential applications in street lights, traffic signals, undersea communication, and areas where Wi-Fi is not practical or allowed.