RFID evolved as an attempt to provide a better alternative to bar code labels used extensively in products tracking. RFID thus has many inherent advantages over barcodes.
Radio contact as required in RFID does away with the need of direct line of sight as required in bar codes. Moreover, with the capabilities of both read/write over the conventional read only, and the ability to store data and place RFID tags inside packing or embedding within products provides usage of RFID with many unique advantages.
Given these advantages the question may arise why then RFID tags are not ubiquitous despite Wal Mart~Rs mandate that its top 100 suppliers should put radio frequency identification (RFID) tags on all pallets and cases they ship to its distribution centers and stores.
The answer lies partly in the hue and cry surrounding the privacy issues related to the RFID and partly in the high cost of RFID tags as compared to bar code labels. But with efforts already on to counter the privacy threats and to reduce the cost of RFID tags, it should not be long when we will see RFID starts displacing bar en masse.