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RFID is one method of automatic identification and data capture (AIDC). For example, an RFID tag attached to an automobile during production can be used to track its progress through the assembly line; RFID-tagged pharmaceuticals can be tracked through warehouses; and implanting RFID microchips in livestock and pets enables positive identification of animals.

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Transponders are still used by most powered aircraft.

Another early work exploring RFID is the landmark 1948 paper by Harry Stockman, who predicted that "...

An early demonstration of reflected power (modulated backscatter) RFID tags, both passive and semi-passive, was performed by Steven Depp, Alfred Koelle, and Robert Frayman at the Los Alamos National Laboratory in 1973.

A radio-frequency identification system uses tags, or labels attached to the objects to be identified.

The basic Cardullo patent covers the use of RF, sound and light as transmission media.

The original business plan presented to investors in 1969 showed uses in transportation (automotive vehicle identification, automatic toll system, electronic license plate, electronic manifest, vehicle routing, vehicle performance monitoring), banking (electronic checkbook, electronic credit card), security (personnel identification, automatic gates, surveillance) and medical (identification, patient history).

considerable research and development work has to be done before the remaining basic problems in reflected-power communication are solved, and before the field of useful applications is explored." Mario Cardullo's device, patented on January 23, 1973, was the first true ancestor The initial device was passive, powered by the interrogating signal, and was demonstrated in 1971 to the New York Port Authority and other potential users.

It consisted of a transponder with 16 bit memory for use as a toll device.

Active tags have a local power source (such as a battery) and may operate hundreds of meters from the RFID reader.

Unlike a barcode, the tags don't need to be within the line of sight of the reader, so it may be embedded in the tracked object.

Radio-frequency identification (RFID) uses electromagnetic fields to automatically identify and track tags attached to objects.

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