Could you elaborate on the process of transmitting bits, specifically in the context of using WIFI technology? I'm curious about the underlying mechanisms that enable the seamless transfer of digital information, including bits, from one device to another over a wireless network. Could you break down the steps involved, from encoding the bits to their successful receipt by the intended receiver? I'm particularly interested in understanding how the bits are packaged and transmitted, as well as any challenges or limitations that may arise during the process.