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Radio-frequency identification (RFID) is a technology that uses communication via electromagnetic waves to exchange data between a terminal and an electronic tag attached to an object, for the purpose of identification and tracking. Gta Vcs Pc Edition Beta 1. An RFID system consists of a reader and transponders. Transponders (derived from the words 'transmitter' and 'responder') are attached to the items to be identified. They are often called 'tags'. Radio Frequency Identification (RFID) involves contact less reading and writing of data into an RFID tag's non-volatile memory through an RF signal.