Li-Fi is a fast, cheap optical version of Wi-Fi that uses visible light communication (VLC) to transmit data wirelessly using light. It uses LED bulbs that can be flickered on and off at extremely high speeds to transmit binary data, allowing for much higher speeds than traditional Wi-Fi. Li-Fi provides secure, high-speed communication anywhere there is light and has the potential for uses like traffic updates from street lights or underwater communication. However, it requires light sources to be on and has a shorter range than Wi-Fi.