The RFID system typically consists of a tag made up of a microchip with an antenna, and an interrogator (reader), which is embedded with a single chip processor and an antenna.
The purpose of an RFID system is to enable data to be transmitted by a tag, which is read by an RFID reader and processed according to the needs of an application. Moreover, the data transmitted by the tag may provide identification or location information, or specifics about the product, for example, price, color, date code, etc. Also, RFID systems can be employed for tracking objects- as an invasion of privacy.
In short, RFID tags can carry data and serve as data transfer agents; a reader in range of the tag’s signal will receive the data, decrypt it, and forward it to the host computer for stores all collected data within a database.