RFID Chips: Advantages and Disadvantages

Updated on: March 1, 2023

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Condensing information to an amount as small as possible while keeping the crucial details is vital in a range of instances, including the provision of guidelines, the inclusion of data in product description in trade, and other situations of the kind. Among the tools that help to provide succinct yet accurate and complete information, RFID chips remain some of the most efficient tools alongside with bar codes (Akhtar et al. 263). Although RFID chips currently lack security in data management, they hold quite strong potential for future integration into business, education, and management of personal data.



The RFID technology has a range of advantages to boast when it comes to functionality and the range of opportunities for data transfer and storage that it provides. First, the size of RFID chips should be mentioned as one of the key benefits (Khan et al. 2). Despite containing quite a substantial range of data, RFID chips share a homogenous and incredibly small size, namely, 2 mm x 4 mm (Xu et al. 82).

In addition, an RFID chip is not dependent on the presence of IT technology; instead, working as a source of a radio signal, an RFID chip can function in any environments, which makes I not only extraordinarily convenient but also much more dependable and reliable than any other methods of data storage, including not only digital ones, but the ones involving the use of other materials, such as paper tags.

Furthermore, as a tool for implementing inventory management, RFID chips offer a chance to save storage space. In contrast to other tools that store product data, RFID chips are compact and take very little room, which allows maximizing their utility and managing inventory much more effectively. Moreover, it is possible to count every individual RFID item digitally, which is why the use of the specified device also allows saving time substantially (Khan et al. 4).

Finally, due to instant data management and the enhancement of the associated tasks that RFID chips provide, the task of meeting customers’ needs is simplified significantly, reducing time for addressing each individual customer and, thus, causing their satisfaction levels to rise. The described outcome can be considered the central factor in selecting RFID technology over other tools as the superior method of information management and transfer (Khan et al. 8).


However, despite the apparent utility of RFID chips and the plethora of opportunities that it provides for making the process of data management seamless, the specified technology also has several flaws to consider. A crucial disadvantage of RFID chips is their relatively high production cost. Due to the absence of a clearly delineated and standardized approach to developing and manufacturing RFID chips., their production may involve the use of rather expensive material or resources that are difficult to obtain, which is why production costs may skyrocket once the cost management framework is misaligned or once cheaper alternatives are unavailable (Xu et al. 84). Therefore, the choice of RFID chips as the means of containing and transferring information about products may not necessarily be available to all companies.

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Finally, the security issue with RFID chips needs to be discussed as one of the major dents in the framework of their usage. Specifically, being quite simple in their structure, RFID chips are particularly prone to being cloned (Chanchaichujit et al. 2). Thus, the threat of stealing personal data, including credit card numbers and the associated information that will expose its owners to an array of risks becomes particularly relevant. The possibility of the described instance of data breach must become the driver behind improving the current security rats of RFID cards so that the specified tool could be used safely.

Future Prospects

Even though RFID chips do have quite strong potential, the current security issues require that profound research should be conducted to minimize the risks and improve the technology accordingly.

Once appropriate research is carried out and the RFID technology is enhanced sufficiently to prevent the instances of security breach and data leakage, RFID chips can be safely used as the means of transferring and keeping information. Specifically, the future prospects of RFID chips include their use as implants so that personal information could be provided immediately, should the need arise (Akhtar et al. 261).

The idea of using RFID chips as implants makes a significant amount of sense since they help to simplify a range of actions performed as a part of a daily routine by most citizens. For instance, RFID implants are expected to give an opportunity for instant logging into the workplace network for office workers (Akhtar et al. 266). The opportunity to pay for a range of products and services by using RFID implants is another technological advancement that is likely to become the area of RFID-related research in the future (Akhtar et al. 267). Although the described innovations cannot be called groundbreaking, they are very helpful in simplifying routine processes and helping people to maximize the efficacy of their time management in the workplace, as well as in other areas of their lives (Akhtar et al. 267). Overall, the described prospect for future research of RFID seems to be quite promising.

Another area that RFID research may touch upon in the future includes the chances to improve the antenna range of RFID chips, as well as their durability. Indeed, while being quit effective in containing and transferring information, RFID chips are rather fragile and, therefore, require caution in managing them. Namely, the substrate typically used of RFID tags, while being very pliable and flexible, is also quite fragile and, therefore, could use reinforcements to ensure that it is not damaged during transportation or handling. Furthermore, the RFID antenna, which is typically made of a thin layer of copper, silver, or aluminum, is also quite prone to damage (Gigac et al. 72).


Despite having quite a number of prospects in terms of their use in a number of areas for data management, RFID cards contain major disadvantages, of which the lack of security remains the main argument against their use. Specifically, when deployed in the setting where most customers are not technically savvy and lack the expertise required to prevent the instances of data theft, an RFID-based system is likely to lead to a large drop in safety levels. However, the advantages that RFID cards hold still represent an important argument for supporting the further development of the technology and the enhancement of its security. Once the threat of data leakage is contained, opportunities for integrating RFID tools into every area including business, education, and personal life will become open for exploration. Therefore, it is vital not to overlook the chances that RFID tools provide but, instead, promote the active research and analysis of the specified technology. As a result, chances for improving data management and ensuring that it is transferred promptly while remaining safe will emerge.

Works Cited

Akhtar, Muhammad Nadeem, et al. “Ethical Issues of Radio Frequency Identification Chips Implanted in Human Bodies: A Review.” Indian Journal of Science and Technology, vol. 13, no. 3, 2020, pp. 269-276.

Chanchaichujit, Janya, Sreejith Balasubramanian, and Ng Si Min Charmaine. “A Systematic Literature Review on the Benefit-Drivers of RFID Implementation in Supply Chains and Its Impact on Organizational Competitive Advantage.” Cogent Business & Management, vol. 7, no. 1, 2020, pp. 1-8.

Gigac, Juraj, Mária Fišerová, and Svetozár Hegyi. “Comparison of Thermal Transfer and Inkjet Printing of UHF RFID Tag Antennas on Paper Substrates.” Wood Research, vol. 66, no. 1, 2021, pp. 71-84.

Khan, Shaharyar, M. Asim, and S. Manzoor. “Impact of Information Technology on Internal Supply Chain Management Implementation of RFID Tags.” European Journal of Business and Management Research, vol. 5, no. 2, 2020, pp. 1-9.

Xu, Yawei, Dong, L., Wang, H., Xie, X. and Wang, P. “Surface Crack Detection and Monitoring in Metal Structure Using RFID Tag.” Sensor Review, vol. 40, no. 1, 2020, pp. 81-88.

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