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Radio-frequency identification, or RFID, technology provides identifying information about a person or an object, much like Barcodes technology does. The RFID inlay -- which can be as small as a grain of rice -- is the functional part of an RFID tag's label that encodes the identifying information. The RFID inlay uses radio frequency waves to relay information to a computer system via an RFID reader.
    The RFID inlay consists of two components. An integrated circuit or microchip that stores personal identifying information attaches to a small coil of aluminum, copper or silver wires called the antenna, which transmits and receives radio frequency signals. The microchip and antenna are then placed on a label, and the entire unit is encased in plastic.