Bluetooth is a short-range wireless technology that allows data exchange between fixed and mobile devices over short distances. It uses radio waves in the 2.4 GHz band and supports data rates of up to 1 Mbps within a 10 meter range. Bluetooth devices can form piconets with one device acting as the master to multiple slaves, or scatternets by interconnecting multiple piconets. Common applications include wireless headsets, file transfers between devices, and connecting peripherals like keyboards and mice. Advantages are wireless connectivity, low power usage, and avoidance of interference through frequency hopping. Limitations include short range and lower security compared to other wireless standards. Future versions aim to improve speed, range, and support larger networks.