What is 'Li-Fi'? Here's everything we know so far about the possible Wi-Fi replacement

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In the not-so-distant future, people will be able to download entire movies with the flick of a light switch. Here is what you need to know about this possible Wi-Fi replacement.

A Tech Crunch report indicates that the term Li-Fi was first coined in 2010 by Harald Haas, a professor from the University of Edinburgh. In 2012, Professor Haas demonstrated a device which utilized this technology as well as its limitations on TED Global Talk.

In a nutshell, Professor Haas' invention could essentially turn light bulbs into wireless hotspots. "All we need to do is fit a small microchip to every potential illumination device and this would then combine two basic functionalities: illumination and wireless data transmission," says Haas on the World Economic Forum.

Compared to Wi-Fi, which utilizes radio waves, Li-Fi uses visible light to transmit data. A report on Fox News says the light spectrum is 10,000 times larger, allowing information to pass through thousands of data streams as compared to a single data stream when using radio waves.

Tests conducted in a laboratory indicate that Li-Fi can produce speeds of 224Gbps. The same source says it's the same as downloading 18 movies in the blink of an eye.

Li-FI has also been tested inside an office located in Tallin, Estonia, allowing employees and researchers to test the technology in an industrial setting says Fox News.

Using Li-FI also saves space. As Li-Fi uses light emitted by LED lamps, there is no need to build infrastructure.

The existing infrastructure used to send Wi-Fi signals are not very efficient, the World Economic Forum reports. Stations are only 5% efficient while the rest of the energy is used for cooling the structures.

Light waves do not interfere with radio signals either. This makes Li-Fi safe to use on airplanes, hospitals or similar spaces where signal interference can be a problem.

No need to throw out your router just yet as there are several limitations to using Li-Fi. There are many variables to consider, including pollution, according to Tech Crunch.

Unlike Wi-Fi, Li-Fi cannot travel through walls. Li-Fi cannot be utilized outdoors either as sunlight can disrupt the signals.

There is also the issue of security. According to the same source, any device with an optical sensor could be used to grab or interfere with the Li-Fi signal.

Velmenni CEO Deepak Solanki says that technology could be made available to the public within the next three or four years. "We are doing a few pilot projects within different industries where we can utilize the VLC technology," Solanki told International Business Times reporters.