Christmas lights can be either incandescent or LED (light-emitting diodes). Incandescent lights have a filament that glows when electricity passes through it. LED lights use a semiconductor that produces light when current is passed through it. The main differences between the two types of lights are that LED lights are more energy-efficient and long-lasting than incandescent lights. They also produce a brighter and more consistent light, and they don't get as hot. LED lights are also more environmentally friendly because they don't contain any toxic chemicals.