LiFi is a wireless optical networking technology that uses light-emitting diodes (LEDs) for data transmission, providing an alternative to WiFi by utilizing visible, ultraviolet, and invisible light spectrums. Developed by Professor Harald Haas, LiFi offers advantages such as high data transmission rates and enhanced privacy but faces challenges including light obstruction and high installation costs. Overall, this technology has the potential to revolutionize data transmission by transforming standard lighting into data transmission tools.