RFID involves the use of small electronic tags that can be attached to objects and transmit data wirelessly to an RFID reader, allowing for the identification and tracking of objects. The basic components of an RFID system include RFID tags containing data chips and antennas, readers and antennas to interrogate tags, and software to process the collected data. Common applications of RFID technology include inventory management, asset tracking, supply chain management, electronic toll collection, and access control.