When discussing methods for automatically tracking goods, pallets, and containers throughout the supply chain, RFID and the internet of things are sometimes used interchangeably, and users frequently combine the two technologies. However, there are significant distinctions between RFID and IoT.

RFID is a general term for a technology that enables users to read data from unique RFID tags attached to objects. IoT is a general term for various technologies used to communicate with and manage smart devices.

What is IoT?

Any method for connecting physical objects to various networks and information services is most frequently referred to as the Internet of Things (IoT). Industrial users frequently refer to various methods of monitoring and controlling manufacturing and industrial equipment as the "industrial internet of things," or IIoT.

What is RFID?

The earliest forms of RFID date back to the 1940s. Researchers first discovered several methods for remotely reading data from a specially designed antenna. A radio signal is typically bounced off a passive RFID tag by one of these systems' active RFID readers. This method could reduce the potential cost of conventional wireless data communications by eliminating the need for a tag battery. Inexpensive RFID tags are used for tracking packages and scanning items at the point of sale.

RFID vs. IoT: What are the differences?

RFID is a wireless technology. Radio waves transfer data between an RFID tag and an RFID reader. As long as the tags are in the reader's line of sight, they can be read from a distance. IoT isn't quite wireless, but it's also not quite wired. In order to access remote data sources, an IoT device connects to the internet via Wi-Fi or Ethernet cable and communicates with other IoT devices in its network as well as through the internet itself.

These two technologies have a lot in common. However, depending on your application, they differ significantly in some important ways that might favor one. Although IoT is an active technology compared to RFID, both are used for identification and authentication. IoT uses long-range radio waves to identify objects, whereas RFID uses short-range radio waves.

RFID technology is ideal for tracking numerous items over short distances, such as inventory tracking in retail establishments or warehouses and tracking heavy equipment maintenance to guarantee that machines are always in good working order. Since they can send out signals that travel much farther than those emitted by RFID tags on individual products, IoT devices are better suited for applications where it will be necessary to monitor things at different distances from one another, like environmental sensors deployed across a large area.

Whether one is better compared to the other will depend on your needs. Either choice may be appropriate for you if you're looking for a straightforward way to improve convenience and security in your home or business. However, it might make sense to compare both technologies before choosing if you want more sophisticated capabilities like real-time tracking or automation.

RFID's role in IoT

Users frequently combine RFID and IoT. RFID offers dependable connectivity between real-world objects and online-connected RFID readers. Most of these implementations use IoT capabilities for data sharing between physical devices and cloud databases to support various authentication, transaction, analytics, and control use cases. These can occasionally be used with other technologies, like barcode readers and tags, which can be more economical in some cases.