Li-Fi is the most ideal solution for effective data transmission due to its basic building block: light. Inexhaustible, accurate, fast, safe and cost effective, Li-Fi could potentially be the successor of Wi-Fi upon further development. Its working centers around the principle of varying the electrical signal based on the required output. Its applications range widely from toys to communication and can find uses in critical fields like military and medicine. Further research on Li-Fi is gaining pace in the recent times which will potentially resolve the many unsolved mysteries of the world.