LiFi (light fidelity) is a bidirectional wireless system that transmits data via LED or infrared light. It was first unveiled in 2011 and, unlike wifi, which uses radio frequency, LiFi technology only needs a light source with a chip to transmit an internet signal through light waves.

Li-Fi is a derivative of optical wireless communications (OWC) technology, which uses light from light-emitting diodes (LEDs) as a medium to deliver network, mobile, high-speed communication in a similar manner to Wi-Fi.
Visible light communications (VLC) works by switching the current to the LEDs off and on at a very high speed,[6] too quick to be noticed by the human eye, thus, it does not present any flickering. Although Li-Fi LEDs would have to be kept on to transmit data, they could be dimmed to below human visibility while still emitting enough light to carry data.[7] This is also a major bottleneck of the technology when based on the visible spectrum, as it is restricted to the illumination purpose and not ideally adjusted to a mobile communication purpose. Technologies that allow roaming between various Li-Fi cells, also known as handover, may allow to seamlessly transition between Li-Fi. The light waves cannot penetrate walls which translates to a much shorter range, and a lower hacking potential, relative to Wi-Fi.[8][9] Direct line of sight is not necessary for Li-Fi to transmit a signal; light reflected off walls can achieve 70 Mbit/s.[10][11]
Li-Fi has the advantage of being useful in electromagnetic sensitive areas such as in aircraft cabins, hospitals and nuclear power plants without causing electromagnetic interference.Both Wi-Fi and Li-Fi transmit data over the electromagnetic spectrum, but whereas Wi-Fi utilizes radio waves, Li-Fi uses visible, ultraviolet, and infrared light. While the US Federal Communications Commission has warned of a potential spectrum crisis because Wi-Fi is close to full capacity, Li-Fi has almost no limitations on capacity. The visible light spectrum is 10,000 times larger than the entire radio frequency spectrum. Researchers have reached data rates of over 224 Gbit/s,which was much faster than typical fast broadband in 2013. Li-Fi is expected to be ten times cheaper than Wi-Fi. Short range, low reliability and high installation costs are the potential downsides.
PureLiFi demonstrated the first commercially available Li-Fi system, the Li-1st, at the 2014 Mobile World Congress in Barcelona.
Bg-Fi is a Li-Fi system consisting of an application for a mobile device, and a simple consumer product, like an IoT (Internet of Things) device, with color sensor, microcontroller, and embedded software. Light from the mobile device display communicates to the color sensor on the consumer product, which converts the light into digital information. Light emitting diodes enable the consumer product to communicate synchronously with the mobile device.