RFID uses a reader to locate and track special tags or labels attached to an item, similar to a bar code system. Instead of collecting laser light reflections off printed bar code labels, RFID uses low wattage radio frequencies to read from and write to the tags.

The RFID tags, or labels, equipped with an RF antenna and a tiny computer chip, broadcast information to the RFID reader. These broadcast radio waves do not require a direct line of sight or one-at-a-time labor intensive involvement. Tags do not have to be in contact with the device that "reads" the information stored on the chip.

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