RFID is a system for automatically recognizing and processing data using a wireless communication method. Although commonly considered as technology that can supersede barcodes, RFID has its own strengths and immense potential for wide use. RFID is disruptive technology which opens the doors for a new lifestyle.

Strengths of RFID
1. no line of sight
RFID can protect itself against contamination and, unlike barcode scanning, does not require accurate recognition.

2. Multiple Recognition
Unlike barcodes that recognize a single tag a time, RFID is capable of reading 800 tags per second without collisions as long as they are in the scope of recognition (in UFH band)

3. Store Much More Information (Individual ID)
RFID can store mass data in a single tag and, unlike barcodes that only sort out classes, can identify individual items.

4. Record New Information through the Reader
RFID can record new information in a tag using the reader, which enables local processing in the logistics chain.

5. Linking with Sensors
With a CPU embedded, an RFID tag can interoperate with various sensors; an active tag has a built-in battery, which allows independent data processing.

The RFID system has tags and the reader as its main parts, and is composed of the host computer, which processes recognized information through the reader, the network, and the application program.

Also known as transponder, a compound word meaning that information is transmitted, it is composed of an IC chip, which stores unique information, and an antenna.

Technically, this device is a reader/writer since it can read and record tag information and is also known as an interrogator because it can ask the tag questions. It has an embeded wireless transceiver and antenna, and the antenna is also used as hardware.

The reader and the host computer are usually connected to cable, such as RS-232, and the development of communication technologies has led to more choices in the types of wireless communications, and to a direct connection to the Internet.