According to studies, the price of RFID will approach $0.05-0.10 if purchased in bulk. When this trend continues, it would not be long before the market will lean towards the RFID due to cost-effectiveness, thus, possibly defeating the role of barcodes that are widely used for commercial purposes with about 5 billion worldwide occurrences daily. One of the organisations that are working to regularise RFID is the EPCGlobal Inc., which is a cooperative effort between UCC and EAN. These are the two parties responsible for the application of barcodes in the U.S. and Europe market (RSA Security, 2004b).
Through the advantages brought about by the RFID, problems in the privacy of consumers are raised by certain groups. Concerns on the possibility of detecting the possessions of the consumers without their knowledge are the main objective of these groups. If access of being able to detect and read the RFID were given to the wrong hands, possibility such as robbery and other crimes is at hand. Also, the business groups perceive the possibility of RFID being a tool for company surveillance. As a possible answer to the security issues, RSA Security provides ways to validate RFID readers and to be able to make protected internal transactions (RSA Security, 2004a).
Upon activation from the reading device, the RFID tag sends a signal which can be translated as a distinct number that can identify the particular item. In this effect, the RFID tag does not require a power source because it can be considered as inert and works only when stimulated. There are already practical uses of this technology. One application is for proximity cards that are used more conveniently than metal keys. Other examples include payment devices such as Speedpass, E-Z Pass and FasTrak. Another advantage is for identification of lost pets wherein RFID tags implanted through surgical procedure can be scanned to be able to determine the owner even if other sorts of identification are lost (RSA Security, 2004b).
Basic System Schematic
Important technologies led to the development of the RFID. One invention that can be related to the evolution of this technology is the apparatus for the Soviet government with the main purpose of surveillance made by Lon Theremin in 1945. It works through a process similar to the RFID wherein activation was possible through the intercepted radio waves and audio information. According to references, technology applied in the RFID was present in the 1920s although it was also stated that such application was just discovered in the 1960s (AIM, n.d). Another technology that may have an influence in the RFID development was the IFF transponder in 1939 that belongs to the British and was used during the World War II. Using this technology, they were able to determine whether airplanes are enemies and which are allies. In the study of RFID, one of the earliest people who made interest on the technology is Harry Stockman in his work "Communication by Means of Reflected