RFID is a technology that uses radio waves to automatically identify objects or people. An RFID tag attached to an item can be scanned by an RFID reader to retrieve information about that item without needing direct line-of-sight like a barcode. RFID readers can scan multiple tags simultaneously and are not affected by environmental factors like dirt or damage like barcodes. RFID systems are used for applications like tracking animals, preventing theft, handling luggage, managing blood banks, and ensuring printer cartridges are compatible.