RFID tags are used to automate a bike renting system. Each bike is tagged with a passive RFID tag storing a unique ID encrypted with the miniDES algorithm. RFID readers scan the tags and send the encrypted IDs to a microcontroller for decryption and authentication. The microcontroller verifies the IDs and records rental data like user, bike ID, and timestamps which is sent to a backend database for management and reporting. The miniDES algorithm provides lightweight encryption suitable for the low-power RFID tags and embedded systems used while ensuring security of rental transactions.