LI-FI is a technology that uses light from LED bulbs to transmit data, varying the intensity of light faster than the human eye can detect. It began development in the 1990s and offers potential solutions to issues with radio spectrum capacity and security. LI-FI works by transmitting digital 1s and 0s via the on/off state of LED lights. It has applications for traffic lights, intrinsically safe environments, and undersea use. Advantages over Wi-Fi include larger bandwidth, higher efficiency, more availability, and better security, though it requires the presence of light.