RFID is a technology that uses radio waves to automatically identify objects. RFID tags attached to objects are scanned by an RFID reader to transmit data wirelessly. A basic RFID system consists of an antenna that emits radio signals, a transceiver that controls data acquisition and communication, and a transponder tag that contains identifying information transmitted to the reader. The document discusses applications of RFID technology including tracking objects and automating processes like access control and parking systems.