RFID tags carry information like a serial number and model number that is transmitted to a compatible reader when passed through its radio frequency field, identifying the object. There are three main types: active tags with batteries that communicate over several meters, semi-passive tags with batteries that only transmit in response to a reader signal, and passive tags that derive power from the reader field without an active transmitter. RFID finds common applications in areas like asset tracking, supply chain management, and vehicle identification/tolls where it provides benefits like enhanced customer satisfaction, improved efficiency, reduced costs and manpower compared to alternatives like barcodes. Future developments continue to expand its uses.