The SixthSense technology developed by Pranav Mistry allows users to interact with digital data using everyday physical objects. Some of its features include taking photos by moving fingers, using one's palm as a calculator, analyzing held objects, and accessing related online information by holding printed materials. It aims to reduce the need for separate digital devices by bringing the digital world into the physical one through gestures and objects. Mistry plans to open-source the SixthSense software to allow all programmers to explore its possibilities.