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RFID technology has been widely used in logistic, automation and authentication applications, but it still has many potential issues such as the risks of privacy and security. This paper presents a novel RFID security protocol based on XTEA algorithm. Analysis of the security and privacy of this novel protocol is performed using FPGA based prototyping platform. Different attack models are implemented, and the results show that the protocol is robust and safe against major attacks. Analysis of the performance is compared with related works and shows its advantages in code size, clock cycle, communication cost and scalability.