Li-Fi, or Light Fidelity, is a technology that uses LED lights to transmit data at high speeds, contrasting with traditional Wi-Fi which relies on radio waves. It has advantages such as larger bandwidth and higher security, but faces limitations like ineffective operation in the dark and the need for direct line of sight. The technology has potential applications in various fields including medical devices, aviation, and location-based services, paving the way for a future with enhanced data transmission capabilities.