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For pervasive, ubiquitous applications employing RFID devices, low-cost and secure RFIDs tags are becoming a necessity. The ICs for such systems have stringent requirements in terms of cost related to area and power consumption, making conventional encryption unsuitable. This paper discusses the potential of employing the TEA algorithm for medium secure systems. It is found that using the implementation style proposed, TEA based encryption hardware can be made to meet the requirements. The potential usage of low-cost secure RFID for applications such as secure device tracking is also discussed.