Ring topology is a type of network topology where each device is connected to two other devices in a circular fashion, forming a ring. Data can travel in one direction in a unidirectional ring or both directions in a bidirectional ring. Ring topology is used in local and wide area networks like SONET fiber networks. It provides redundancy in case a connection is lost through one node by allowing data to route in the other direction. Some disadvantages are that if one device fails, the entire network is impacted, and it can be more expensive to set up due to hardware requirements.