Li-Fi is a wireless communication technology that uses visible light communication to transmit data at high speeds. It works by rapidly modulating LED lights to transmit digital signals. Key advantages are high speeds of up to 10Gbps, providing wireless connectivity without interfering with other devices, and ability to transmit data in areas where Wi-Fi is not allowed or possible. Main challenges are that light cannot pass through objects and developing effective bidirectional communication methods, but Li-Fi has potential to become an important complement or alternative to radio-based wireless networks in the future.