The Sixth Sense technology developed by Pranav Mistry allows users to interact with digital information in the physical world using natural hand gestures. The prototype consists of a camera, projector, and colored markers that the camera uses to interpret gestures. It projects information onto surfaces based on gestures made near objects. Applications include using hand gestures to make calls, access maps, and check the time without touching a device. The technology aims to seamlessly integrate digital and physical worlds.