XFP modules are hot-swappable transceivers that operate at near-infrared wavelengths and support various network protocols including 10 Gigabit Ethernet and Fibre Channel. They include diagnostic monitoring and are compatible with major network equipment vendors. The document then provides details on different types of XFP modules including dual port, single port BIDI, CWDM, and DWDM variants along with their technical specifications and applications.