We all have of course seen James Bond attaching a small chip on an enemy's overcoat to track the bad guy enemy. The spy-chip he used was actually the RFID system. RFID means Radio Frequency Identification method. This system uses transponders to store and remotely retrieve stored data. In the RFID method, these transponders are also known as RFID tags. Currently, RFID is used everywhere. From animal tracking to container tracking, and credit cards to library cards, we see the use of RFID. Some of the RFID applications can even remove human intervention completely.

Generally, an RFID system has tags, tag readers, servers and application software. The tags are mobile devices with digital memory chips and unique identification codes that transmit the data, which is then read by the tag reader. Further processing is done by application software according to the need.

Though relatively expensive, RFID provides the advantage of having multiple independent data sources on one chip. And when one thinks of long-term gains, RFID is the future. RFID technology not only provides greater functionality but also greater clarity. But, as every coin has two sides, RFID technology has some side effects too. The use of RFID creates the problems about the privacy of an individual. These concerns mainly rise from the RFID tags attached to products consumers buy.

Thus, great technologies like RFID must be judiciously used to enjoy the benefits from it. Once the negative issues are removed by standardization and by law then RFID will definitely be useful for mankind.