what is main concept of RF-ID communication

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embpic

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Hello masters
i am very new to rf-id communication. i saw one circuit but what actually do rf-id.what does encoder and decoder do. and how to communicate with 8051.
because i have to do interface rf-id with 8051 and operate with remote. so what is main concept how data will move with direction and i have one ic for ref. pt4317.
 

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