Barcodes hold data that can be decoded by barcode readers. There are different types of barcode readers including pen-based and laser-based readers. Barcodes come in various formats, including linear barcodes like UPC codes and 2D barcodes like QR codes. Barcodes are widely used in retail stores, manufacturing, libraries, and offices to identify products efficiently with benefits like reduced costs and errors compared to manual identification. However, there are also some challenges like upfront costs and issues with damaged labels.