“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.” Bill gates "RFID can be big brother if the manufacturers and stores that use it want it to be...The technology is here.“ Kevin Beaver RFID history, its development, applications and possibilities are described in this paper. Exchange of commodities is almost unimaginable without bar codes that were developed more than 20 years ago. In the beginning they were simple codes with wide and narrow black lines, but today those codes have shapes of dots, squares, etc. In order to speed up the exchange of commodities and to get more information about certain product RFID technology evolved. RFID world is not black and white as it is with bar code, it is more complex so it requires use of sophisicated technology. RFID technology is more expensive and demands education so it could be used properly, but upgrading of RFID onto existing infrastructure based on bar code is easy. Communication and data transfer are contactless and realised via RFID tags and RFID readers. RFID utilisation is very simple but data processing and system implementation require expertise.