How Do Tracking Chips Work

Have you ever misplaced your wallet, car keys, or smartphone? It’s a common frustration that we all experience at some point. Fortunately, the advancement in technology has given us a solution to this problem- tracking chips. These tiny devices have become increasingly popular in recent years, and for a good reason. 

How Do Tracking Chips Work? Tracking chips use radio frequency identification (RFID) technology to communicate with readers and transmit data. The chips contain a unique identification code and can be embedded into various objects, allowing them to be tracked and located in real-time.

With a tracking chip, you can locate your lost items quickly and easily. But how do they work? That’s precisely what we’ll be exploring in this blog. So, if you’re tired of misplacing your valuable items and want to learn more about tracking chips, read on!

Understanding the Basics of Tracking Chips

Tracking chips, also known as tracking devices or tags, are small electronic devices that can be attached to objects, animals, or even humans to monitor their location and movement.

These tiny devices use different technologies to enable tracking, and they are increasingly used in various applications, from personal tracking to supply chain management, and from pet tracking to asset tracking.

Definition of Tracking Chips

A tracking chip is an electronic device that uses various technologies to track and monitor the location and movement of an object or individual. The most common types of tracking chips are GPS tracking chips, RFID tracking chips, and Bluetooth tracking chips.

These devices have different features and functions, but they all share the same goal of enabling real-time tracking and monitoring.

Types of Tracking Chips

GPS Tracking Chips:

GPS (Global Positioning System) tracking chips use satellite signals to determine the location of an object or individual. These chips can provide real-time location data, as well as historical location information. GPS tracking chips are commonly used in personal tracking devices, vehicle tracking systems, and asset tracking applications.

RFID Tracking Chips:

RFID (Radio Frequency Identification) tracking chips use radio waves to communicate with a reader and transmit information about an object or individual’s location and identity. These chips are commonly used in supply chain management, inventory tracking, and access control systems.

Bluetooth Tracking Chips:

Bluetooth tracking chips use Bluetooth technology to communicate with a nearby device, such as a smartphone, to determine the location of an object or individual. These chips are commonly used in personal tracking devices, pet tracking systems, and item finders.

Components of a Tracking Chip


The antenna is the part of the tracking chip that receives and transmits signals. It is responsible for communicating with the tracking system or device and providing location data.


The transmitter is the part of the tracking chip that sends out signals to the tracking system or device. It is responsible for transmitting location data and other information.

Power Source:

The power source is the part of the tracking chip that provides energy to the chip. It can be a battery, a solar panel, or another type of power supply.


The processor is the part of the tracking chip that processes data and manages the chip’s functions. It is responsible for analyzing location data and sending alerts or notifications based on pre-defined rules.

Working of GPS Tracking Chips

GPS tracking chips have become ubiquitous in today’s society, with applications ranging from personal navigation to fleet management. These chips are designed to track the location of a person, vehicle, or object in real-time by using signals from global positioning system (GPS) satellites.

GPS Tracking Chip Overview

GPS tracking chips use a combination of hardware and software to receive signals from GPS satellites orbiting the Earth. The chip receives these signals and then processes them to determine the device’s location, speed, and heading.

The GPS chip then transmits this information to a central server, which can be accessed by authorized users through a web-based interface or mobile application.

How GPS Tracking Chips Determine Location: 


GPS tracking chips determine location using a process called trilateration, which involves measuring the time it takes for signals to travel from GPS satellites to the tracking chip.

The tracking chip needs to receive signals from at least three GPS satellites to determine its location accurately. Each GPS satellite broadcasts a signal that contains its location and the time the signal was transmitted.


When the tracking chip receives these signals, it calculates the distance to each satellite by measuring the time it took for the signal to travel from the satellite to the chip. 

The chip then uses this information to determine its location through a process called triangulation. Triangulation involves using three distance measurements to determine the precise location of the tracking chip.

Accuracy of GPS Tracking Chips: 

Factors Affecting GPS Accuracy, 

Several factors can affect the accuracy of GPS tracking chips, including the number of GPS satellites in view, the quality of the GPS signal, the presence of obstacles, and the sensitivity of the GPS chip. These factors can cause inaccuracies in location readings, which can be detrimental in certain applications.

Methods to Improve GPS Accuracy

To improve the accuracy of GPS tracking chips, several methods can be used, such as using multiple satellite systems, increasing the number of visible satellites, using differential GPS, and using a high-quality GPS chip. 

Differential GPS involves using a stationary GPS receiver to compare the location readings of a mobile GPS receiver and correcting any inaccuracies caused by signal interference or atmospheric conditions.

Working of RFID Tracking Chips

RFID (Radio Frequency Identification) tracking chips are tiny devices that use radio waves to communicate with an RFID reader. These chips can be found in a variety of products and applications, from passports and credit cards to livestock and industrial machinery.

RFID Tracking Chip Overview

An RFID tracking chip is a small, passive device that contains a microchip and an antenna. When the chip is activated by an RFID reader, it sends out a radio signal that contains a unique identification number. 

The RFID reader then captures this signal and decodes the information, allowing it to identify the object or person carrying the RFID chip.

RFID chips come in a variety of forms, including tags, cards, and implants. They are commonly used for inventory management, access control, and asset tracking, as well as in passports and credit cards for identification and security purposes.

How RFID Tracking Chips Communicate

RFID tracking chips communicate with RFID readers using radio waves. When an RFID reader is within range of an RFID chip, it sends out a signal that activates the chip.

The chip then sends back a signal containing its unique identification number. This process is known as “backscatter,” and it allows RFID chips to communicate with RFID readers without the need for a battery or power source.

There are two main types of RFID systems: passive and active. Passive RFID systems use the power from the RFID reader to activate the chip and send back a signal. 

Active RFID systems, on the other hand, have a battery in the chip that allows it to send out a signal without being activated by an RFID reader.

Applications of RFID Tracking Chips

  1. Inventory Management: RFID tracking chips are commonly used in inventory management to keep track of products and materials. By attaching RFID tags to items, companies can quickly and easily locate and identify inventory, reducing the time and resources required for manual tracking.
  2. Access Control: RFID tracking chips are also used for access control, such as in keycards or security badges. By embedding an RFID chip in the card, the cardholder can quickly and easily gain access to secure areas by simply swiping or tapping the card on an RFID reader.

Working of Bluetooth Tracking Chips

In recent years, tracking technology has become an integral part of our lives. One such technology that has gained popularity is Bluetooth tracking chips. These tiny devices are used to track and locate objects or people, making them useful in a variety of industries. 

Bluetooth Tracking Chip Overview

Bluetooth tracking chips are small electronic devices that use Bluetooth technology to communicate with other devices, such as smartphones, laptops, or tablets. 

They are equipped with a small antenna, microprocessor, and memory. These devices are usually powered by a small battery and can be attached to almost any object.

Bluetooth tracking chips work by sending signals to nearby devices and then receiving responses. These signals can be used to determine the location of the device, making them useful for tracking assets, people, or even pets.

How Bluetooth Tracking Chips Connect

There are two primary ways that Bluetooth tracking chips connect to other devices: Bluetooth protocol and Bluetooth beacons.

Bluetooth Protocol:

The Bluetooth protocol is a set of rules that devices use to communicate with each other. When a Bluetooth tracking chip is within range of a Bluetooth-enabled device, it sends a signal to that device. 

The device then responds with a signal of its own, and the tracking chip uses this signal to determine the distance between itself and the device. This method of connection is commonly used in indoor environments.

Bluetooth Beacons:

Bluetooth beacons are small devices that transmit signals to nearby Bluetooth-enabled devices. When a Bluetooth tracking chip is within range of a beacon, it sends a signal to the beacon. 

The beacon then responds with a signal of its own, which the tracking chip can use to determine its location. This method is commonly used in outdoor environments.

Applications of Bluetooth Tracking Chips

Bluetooth tracking chips have a wide range of applications, including:

Asset Tracking:

Bluetooth tracking chips are commonly used to track assets such as laptops, keys, and vehicles. These devices can be attached to the asset, and their location can be monitored in real-time using a smartphone or web app. This makes it easy to keep track of valuable items and prevent loss or theft.

Indoor Navigation:

Bluetooth tracking chips can also be used for indoor navigation. By placing beacons in strategic locations, such as in a shopping mall or museum, visitors can use their smartphones to navigate and find specific locations. This technology can also be used in healthcare facilities to track the movement of patients or staff.

Benefits and Limitations of Tracking Chips

Tracking chips are becoming increasingly popular in various industries, including healthcare, logistics, and transportation. While they offer numerous benefits such as real-time tracking, improved efficiency, and cost-effectiveness, there are also concerns about privacy and security. 

Advantages of Tracking Chips

Real-time Tracking

Tracking chips allow for real-time tracking of people, vehicles, and objects. This means that businesses can monitor the location, movement, and status of their assets at all times. 

Real-time tracking can also help businesses optimize their operations by providing insights into how their assets are being used.

Improved Efficiency

Tracking chips can help improve efficiency by reducing manual labor and minimizing errors. For example, in the healthcare industry, tracking chips can be used to monitor patients and automate tasks such as medication management. 

In logistics, tracking chips can be used to streamline supply chain operations by improving inventory management and reducing the risk of lost or stolen goods.


Tracking chips can be a cost-effective solution for businesses that need to monitor their assets. They are easy to install and maintain, and they can be used in a variety of industries. By reducing manual labor and minimizing errors, tracking chips can also help businesses save money in the long run.

Disadvantages of Tracking Chips

Privacy Concerns

One of the main concerns about tracking chips is privacy. People may feel uncomfortable with the idea of being constantly monitored, and there is a risk that personal data could be misused. 

To address these concerns, businesses that use tracking chips need to be transparent about how the data is being used and ensure that it is kept secure.

Security Issues

Another concern with tracking chips is security. If the data from the tracking chips falls into the wrong hands, it could be used for malicious purposes. 

To mitigate this risk, businesses need to ensure that their tracking systems are secure and that they have protocols in place to respond to security breaches.

Future of Tracking Chips

Advancements in Technology

As technology continues to evolve, tracking chips are likely to become even more advanced. For example, they could be used to monitor more complex data such as biometrics or environmental conditions. Advancements in technology could also lead to smaller, more discreet tracking chips that can be embedded in a wider range of objects.

Potential Applications

Tracking chips have the potential to be used in a wide range of applications. For example, in the healthcare industry, they could be used to monitor patients with chronic conditions or to track the location of medical equipment. 

In transportation, tracking chips could be used to optimize shipping routes and reduce the risk of accidents. As businesses become more familiar with tracking chip technology, they are likely to find new and innovative ways to use it.


Tracking chips use a combination of GPS and cellular technology to transmit location data to a central system. The chips are small and discreet, allowing them to be easily hidden or embedded into objects. The data transmitted can be used for a variety of purposes, from tracking lost or stolen items to monitoring the movements of individuals or vehicles.

In conclusion, tracking chips have revolutionized the way we locate and monitor our belongings, pets, and even loved ones. These tiny devices use a combination of GPS, Wi-Fi, and cellular technology to provide real-time location data that can be accessed through smartphones or computers.