RFID is a general term used to describe a system where the identity of an object (or a person) is transmitted wirelessly, via a tiny chip and antenna array, to a reader.
The identity takes the form of a unique serial number, much like a barcode, except far more versatile, as two kilobytes of information can be associated with the RFID 'tag' (or chip) and can be updated in real time.
Some tags are combined with sensors to provide ongoing, additional information about the object and its environment.
Because the chip's information is transmitted wirelessly, a person doesn't have to be involved in scanning items nor do the tags have to be visible to the scanning device.
For example, if one large container holds 15 boxes, some of them nestled inside other boxes, all will be read in one go by a reader. RFID tags have diverse uses and current applications include tracking items for warehousing and transport, labelling luggage in airports and identifying newborn babies in hospitals.