Wi-Fi hotspot is a simple and area accessible wireless network sharing system. A hotspot is a physical state whereby wireless networking services like local area networks can be accessed using an internet-based router. It is used for wireless networking in public areas like coffee shops or airports. It is an internet service in which mobile data can be shared with another device.
Every smartphone has a Wi-Fi hotspot system. If you want, you can provide network access to another device from your phone like Wi-Fi by the hotspot. It allows connecting several devices at once. It is limited to a certain distance.