RFID, or radio-frequency identification, is a technology that uses radio waves to electronically identify objects. An RFID system consists of RFID tags attached to objects, RFID readers to interrogate tags, and an application system. There are three main types of RFID tags: active tags with internal batteries, semi-passive tags with batteries to power the chip, and passive tags that derive power from RFID readers. The document discusses applications of RFID in various industries and benefits such as enhanced customer satisfaction, improved efficiency, and reduced costs. Potential issues with RFID discussed include higher costs compared to barcodes and interference from some materials.