RFID stands for Radio-Frequency Identification and can be used for commercial purposes in tracking, tracing, and timing.

                                                                            

There are two types of RFID tags, passive and active. 

Passive RFID Tags

These tags rely on power from a scanner to be able to work from the radiofrequency waves. This creates a signal that is then read by the scanner. Passive RFIDs are usually in the form of a sticker, microchip or can even be embedded into products or packaging. They are easier to produce, use and are less expensive than active RFID tags. For example, a roll of sticker-like passive RFID tags cost about $0.10 per tag. Passive tags are generally used for tracking the number of processes that certain items go through. Used for date shipped vs date received, security tags, and race timing.

Active RFID Tags

This type of RFID tag is a bit different. The first and immediate difference between active ones is that they have a power supply. Because of this, they can continuously transmit information to the receiver. Transponder tags are the most economical form of active RFID as they only activate when a signal is received, so they don’t utilise as much battery as the beacon types, which are continually active and use the battery power. These tags are significantly more expensive, at $25 or more per tag. They can be used in cars for automatic tolls, tracking devices such as GPS, as they are useful in providing a real-time location. 

RFID tags have multiple uses and, depending on their intended application, either active or passive RFID tags will be suitable.