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The antenna enables the chip to transmit the identification information to a reader. The reader converts the radio waves reflected back from the RFID tag into digital information that can then be passed on to computers that can make use of it.
RFID is a better technology than bar codes in many ways. The two are different technologies and have different applications, which sometimes overlap. The big difference between the two is bar codes are line-of-sight technology. That is, a scanner has to "see" the bar code to read it, which means people usually have to orient the bar code towards a scanner for it to be read...
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