Final answer:
RFID and NFC technologies use microchips to store and transmit information to a nearby reader for tasks such as inventory management, toll collection, and contactless payments. These microchips contain integrated circuits that enable compact and efficient communication between devices.
Step-by-step explanation:
The technology that stores information on a microchip and transmits it to a reader when it is within range is known as RFID (radio frequency identification). RFID tags can be used for multiple purposes, such as being attached to store merchandise, incorporated into transponders for toll booths, or embedded into a pet's skin to help reunite lost pets with their owners. This mechanism functions through a response to a microwave signal, emitting a signal with encoded information. Similarly, NFC (near field communication) operates on a shorter range and is often used for contactless payments via mobile devices. NFC's short data transfer range is a security feature that facilitates transactions without the need for a physical credit card.
Another key application area of such microchips is electronic toll collection, which allows for the tracking of vehicles and payment of toll fees without stopping. These systems use transponders that communicate with roadside readers, improving efficiency and also raising privacy concerns due to tracking possibilities. Integrated circuits on the microchips, typically made from silicon, contain elaborate electronics in a compact form factor, which has been influential in the widespread adoption of personal computers and various forms of wireless communication like Bluetooth and Wi-Fi.