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Radio frequency identification system (RFID) is an automatic technology and aids machines or computers to identify objects, record metadata or control individual target through radio waves. Connecting RFID reader to the terminal of Internet, the readers can identify, track and monitor the objects attached with tags globally, automatically, and in real time, if needed. This is the so-called Internet of Things (IoT). RFID is often seen as a prerequisite for the IoT. This paper introduces the technologies of RFID and IoT, discusses the applications and challenges of RFID technology used in IoT.