OFDM (Orthogonal Frequency Division Multiplexing) is a digital multi-carrier transmission technique that distributes data over a large number of carriers that are spaced apart at precise frequencies to prevent interference. It works by splitting the bandwidth into multiple smaller sub-carriers. Types of OFDM include C-OFDM, MIMO-OFDM, V-OFDM, W-OFDM, and Flash-OFDM. OFDM has advantages over other multiplexing techniques like WDM and TDM, including higher bandwidth efficiency and flexibility. Applications of OFDM include digital audio/video broadcasting, ADSL, wireless networking, and power-line technology.