RFID technology has been in development since the 1960s. Early uses included transportation payment systems and item tracking. RFID works by using radio waves to transmit signals between a reader and tag. Tags can be passive, needing only the reader's signal for power, or active/semi-passive with their own power source. While offering advantages over barcodes like not requiring line of sight, RFID also faces challenges like tag orientation, multiple readers interfering, differing standards, and privacy concerns. As costs decrease and software improves, RFID is positioned to greatly impact supply chain management and other areas.