What is RFID?

Radio-frequency identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. An RFID tag is an object that can be attached to or incorporated into a product, animal, or person for the purpose of identification using radio waves. Most RFID tags contain at least two parts. One is an integrated circuit for storing and processing information, modulating and demodulating a radio frequency (RF) signal and perhaps other specialized functions. The second is an antenna for receiving and transmitting the signal. An emerging technology called chipless RFID allows for discrete identification of tags without an integrated circuit, thereby allowing tags to be printed directly onto assets at lower cost than traditional tags.
The RFID tag can automatically be read from several meters away and does not have to be in the line of sight of the reader. The current thrust in RFID use is in supply chain management for large enterprises. RFID increases the speed and accuracy with which inventory can be tracked and managed thereby saving money for the business.