An RFID is an ID-identification-system. It depends on a tag that contains as minuscule chip that records and stores data, such as a serial number, price or purchase record. This RFID tag can be used to identify all sorts of things such as, merchandise, shipping containers, vehicles, even pet or animal collars. The tag is identified by an electronic scanner that uses radio signals to read chip and track the ID tag.
RFID technology can be very beneficial for organizations. For instance, it can be used to check inventory. The tags can be scanned at a distance and checked against the company’s database, making extremely simple for the company to know what it has on hand. Such as, in 2005 Wal-Mart demanded it’s to suppliers to implement this technology to simplify the management of its huge inventory (IDTechEx, 2005).
In recent years, RFID technology has virtually exploded in popularity. Chances are that you have already encountered quite a few RFID-enabled products, like car keys with an anti-theft chip, that need a valid code to start your car, automated highway tollbooths that can automatically read transponders installed in the vehicles of frequent users (these are in use on Toronto's Highway 407), the Speedpass TM keychain, which automatically debits your bank account or credit card when you pump your own gas (OCA, 2007).
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