OFDM is a digital multi-carrier modulation technique that divides the available spectrum into several narrowband channels or subcarriers. It allows for high data rates by transmitting multiple digital signals over different subcarriers that are spaced closely together. The data is divided into several parallel data streams or channels, with each subcarrier modulated with a conventional modulation scheme like QAM at a low symbol rate. OFDM has become popular for applications like wireless networking due to its ability to combat multipath fading and its high spectral efficiency. It implements the orthogonal subcarriers using the inverse fast Fourier transform (IFFT) and fast Fourier transform (FFT) to generate the signal and decode it.