Li-Fi is a wireless optical networking technology that uses light-emitting diodes (LEDs) for data transmission. It was invented by Professor Harald Hass, who began researching it in 2004 and gave the first demonstration in 2011. Li-Fi works by varying the intensity of LED light faster than the human eye can detect to transmit digital 1s and 0s. It has applications in areas like traffic lights, underwater communication, airlines, hospitals, and hazardous environments. The advantages are high speed, high security, large bandwidth, and low costs, while the disadvantages include inability to pass through objects and potential interference from other light sources.