RFID explained, via explania

View this animation to learn what RFID is, and how it is rapidly becoming a key technology.
What if barcodes were replaced by chips that could not only be read more quickly but could have their information updated as well? And what if those chips could communicate with other devices? These chips already exist and the technology they use is called RFID – short for Radio Frequency IDentification.
Radio-frequency identification (RFID) is the use of a wireless non-contact radio system to transfer data from a tag attached to an object, for the purposes of automatic identification and tracking. Some tags require no battery and are powered by the radio waves used to read them. Others use a local power source. The tag contains electronically stored information which can be read from up to several metres (yards) away. Unlike a bar code, the tag does not need to be within line of sight of the reader and may be embedded in the tracked object.

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