Radio Frequency Identification (RFID) is an automated identification technology that uses tags to transmit data upon RFID reader queries. Compared to barcodes identification technology, RFID tags provide a unique identifier, which raises concerns over user privacy, such as clandestine tracking and inventorying [1]. In its original version, a RFID tag responds to a reader query with its fixed unique serial number. This fixed unique serial number enables tracking of tags and the bearers, possibly without the bearers’ knowledge or consent. In addition to the unique serial number, some tags carry information about the objects they are attached to. Thus, a retail store or a person owning such tags might be under threat of clandestine inventorying. Enormous research effort has been paid in attempt to solve the problem of consumer privacy and industrial espionage in the RFID world. However, most methods demand heavy or frequent cryptographic operations on RFID tags, which contradict the low cost demand of RFID tags ($0.05-0.10). Typically, a low-cost tag should only store hundreds of bits and have 5K-10K logic gates, only a fraction of the gates can be devoted to security tasks. The trade-off between cryptographic operations and low-cost has become a significant challenge in designing RFID tags, and this challenge has impeded RFID being the replacement of barcode technology for cost sensitive item-level applications, such as in supply chains, libraries and rental shops. To solve this problem, a new RFID structure is proposed. Except the fixed unique serial number, tags carry only the IDs in disguise to avoid eavesdropping and clandestine tracking. The database, on the other hand, is responsible for protecting the information security, integrity and non-repudiation. This chapter discusses and presents the implementation of this passive ultra high frequency (UHF) RFID system, based on EPC Class 1 Generation 2 UHF RFID (abbreviate as Gen 2) protocols [1-2].