I2C (Inter-Integrated Circuit) is a communication protocol that enables the exchange of data between integrated circuits, commonly used in electronic devices. It facilitates the bidirectional transfer of information between interconnected components, allowing for efficient communication between microcontrollers, sensors, and other peripherals. I2C is employed in a wide range of applications, such as connecting sensors to microcontrollers, interfacing with display modules, and managing communication between various electronic components within a system.