Bluetooth technology, invented in 1994 by Ericsson and later developed by the Bluetooth Special Interest Group, enables short-range wireless communication between devices such as mobiles, printers, and headsets. Its features include low-cost, low power consumption, and a communication range of 10-30 feet, while it operates on a frequency of 2.4 GHz. Bluetooth has both advantages, like cable replacement and mobility, and disadvantages, including slower data transfer compared to Wi-Fi and potential security vulnerabilities.