Li-Fi, or 'light fidelity', is a technology that enables data transmission through light waves emitted by LED bulbs, allowing data transfer speeds of up to 1 Gbps. Invented by Harald Haas in 2012, Li-Fi offers advantages such as high speed and energy efficiency but faces challenges like high installation costs and issues with light interference. The technology holds the potential for widespread application if its challenges are addressed, positioning light sources as new hotspots for internet access.