Bluetooth is a wireless technology standard for exchanging data over short distances (10-100 m) between devices like computers, phones, and other electronic devices. It was created in 1994 by telecom vendor Ericsson and was commercialized as the Bluetooth Special Interest Group in 1998. Bluetooth works by allowing devices to communicate securely in the 2.4 GHz radio band at up to 3 Mbps. It enables wireless connections between various devices like phones, headphones, printers, and more. Advantages include eliminating wires, allowing for automatic and invisible connections between nearby devices, and enabling wireless networks over small areas. Limitations are that it can only connect to one device at a time and has a lower maximum data rate than infrared.