Radio Frequency Identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. An RFID tag is an object that can be attached to or incorporated into a product, animal, or person for the purpose of identification using radio waves. Chip-based RFID tags contain silicon chips and antennas. Passive tags require no internal power source, whereas active tags require a power source. An RFID system may consist of several components: tags, tag readers, edge servers, middleware, and application software.

 The purpose of an RFID system is to enable data to be transmitted by a mobile device, called a tag, which is read by an RFID reader and processed according to the needs of a particular application. The data transmitted by the tag may provide identification or location information, or specifics about the product tagged, such as price, color, date of purchase, etc. The use of RFID in tracking and access applications first appeared in 1932, to identify aircraft as friendly or unfriendly (”identify friend or foe” (IFF)). RFID quickly gained attention because of its ability to track moving objects. As the technology is refined, more pervasive and possibly invasive uses for RFID tags are in the works

 Asset management is a problem based by almost all companies and institutions. Companies need to keep track of their costly assets like Laptop, PDA, vehicles etc. When using RFID based asset management every asset will be tagged. If an asset is being removed from the store the reader at the store door marks its entry out and the person who is taking this out. If anyone tries to take it out without the usual procedure of checking out it will be detected outside and alarm will ring. Since every usage of the system is monitored and stored, we can generate various types reports from this software.