Li-Fi, or Light Fidelity, is a data transmission technology that uses LED light to encode information through rapid on-off modulation, surpassing traditional Wi-Fi in speed and efficiency. The technology is still developing, with potential applications in traffic systems, medical environments, and underwater communications, although it faces challenges such as high installation costs and the need for line of sight. Overall, Li-Fi presents opportunities to relieve the congestion of radio spectrum and expand wireless data capabilities.