NFC stands for Near Field Communication. It is a protocol which enables devices like smart phones and portables to communicate in short range with minimum setup time. The idea of NFC is to enable sending and receiving information with other NFC devices to enable identification or content delivery.
RFID is the most prominent of NFC, and the concept of NFC was taken from it. It is meant as a substitute for ID bar tags. RFID allows a tag to be linked so every item can then transmit or receive information whenever needed. The tag does not need to be in the line of sight of the reader and just needs to be within transmitting range of it. These RFID tags are:
Active and Semi Active are the actively powered (i.e., battery-run) devices. These tend to be more expensive than the powerless, passive ones. However, they have a much larger range and this range could be increased by boosting the batteries in them.
Semi Active uses battery along with the energy harvested by using the reader's electromagnet (EM) as a current source. This enables the RFIDs to function without depending on the battery.
Passive, on the other hand, relies totally on the energy from the reader. The EM waves induce a current in the coupling circuit, which is then used to transmit information. These tags will be more popular as they are cheaper and could be put on normal grocery products. However, they have a limited range (around 30 m) and require a powerful reader. Active, on the other hand, could boost its range to 300 m.
Passive RFID costs are usually 7-20 cents, which depends on information stored and range. This allows us to mass product RFID tags in bulk cheaply and cost-effectively.
RFID are cheap and will eventually substitute the barcode ID. RFID has it humble commercial beginning in tracking cattle in ranches. Today, RFID is used in logistics to medical to IDs for grocery items. RFID chips were implemented in e-passport post the 9/11 attacks by the U.S. Department of Homeland Security (DHS).
However, RFID has a few drawbacks. In passports there was a major security issue of eavesdropping and identity theft. Any reader within the vicinity could pick up and read and record the information on the passport. So the DHS planted metal coating to ensure that the RFID embedded could not transmit or receive any information when it is closed. This, and the very short transmitting distance, made the passport secure enough but drove up the cost of making the passport to $97. They also planted a secure area around the passport, which ensured that no reader could pick up information being transmitted. This made the entire RFID a very expensive affair.
Apart from security issues, it is possible to encrypt RFID and work is currently going on in this area.
NFC is the broad sense of RFIDs. NFC is used as a substitute of Bluetooth. When compared to Bluetooth, the range and data transfer speeds are less, but the pairing and set-up time is reduced, which makes the technology adequate for fast, frequent exchanges like bill payments or transport tickets.
NFC is currently being tested and even deployed in various form factors. Many phones and portables are embedding NFC chips. It is also being used as a marketing tool among many companies.
A project called Google Wallet, which works on the Nexus, is a famous example of a prototype of these devices. Transport systems, like metros and toll booths, are using it to their advantage for speeding up commuter lines and reducing cost to drastic effects.
NFC is a market poised for explosive growth in the near future. As time progresses, we will see more innovate use of this technology in marketing and as a credit system. However, security and privacy are major hurdles to cross and technical specification for deployment, like the Universal Product Code for bar ID tags, have yet to be put in place.
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