RFID tags are a type of tracking system that uses smart barcodes in order to identify items. RFID is short for “radio frequency identification,” and as such, RFID tags utilize radio frequency technology.
An RFID tag works by transmitting and receiving information via an antenna and a microchip — also sometimes called an integrated circuit or IC. The microchip on an RFID reader is written with whatever information the user wants.
There are two main types of RFID tags: battery-operated and passive. As the name suggests, battery-operated RFID tags contain an onboard battery as a power supply, whereas a passive RFID tag does not, instead working by using electromagnetic energy transmitted from an RFID reader. Battery-operated RFID tags might also be called active RFID tags.