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It can be quite a lot of fun to watch technology evolve in real time -- and at warp speed. Join me as I share the timeline of how an RFID-enabled iPhone went from rumor to market -- in less than two weeks.

November 5 -- Near Field Communications World breaks the news that Einar Rosenberg, the chief technology officer at NFC specialist Narian Technologies and who runs the Near Field Communications Group on Linkedin.com reported that "a highly reliable source has informed me that Apple has built some prototypes of the next gen iPhone with an RFID reader built in and they have seen it in action." And for a little visual spice, they added the Touch Project's iPhone RFID demonstration video.

OK, what's NFC? How does NFC and RFID go hand in hand? NFC (Near Field Communication) is a short-range high frequency wireless communication technology which enables the exchange of data between devices over a 4" distance.

NFC communicates via magnetic field induction, where two loop antennas are located within each other's "near field." NFC works like the pull of two magnets. When you pull the magnets apart, what happens? Once you leave the near field, the "magnetism" isn't strong anymore. This type of communication is suitable for contactless payments, access control, and other transactions not conducted at a distance.

Am I totally confusing you? OK, here's a quick physics lesson: The "near field" and "far field" of an antenna depend on the dominant wavelength emitted by the source. So, the near field is the region within a radius less than the wavelength, while the far field is the region within a radius greater than the wavelength.

NFC operates at 13.56 MHz -- a relatively short wavelength, while UHF RFID systems, for example, operate at 900 MHz, a significantly longer wavelength (with a significantly greater read range -- 20 feet or more). You can have a near field UHF antenna -- but the loops of copper (or silver) needed to create this antenna for the larger UHF wavelength would never fit in an iPhone (or other cell phone or PDA.) There are PDA's that do suport UHF, but the antennas are external (and in some cases larger than the PDA itself!)

Let's get back to the timeline...

Later on November 5, AppleInsider picked up the story, and added some insight as to why Apple would want to add NFC RFID to the iPhone. "New RFID support in future iPhones could enable a variety of "touchless" technologies, ranging from swipe payments (where users could pay for items at a checkout, vending machine, or toll booth by swiping their phone near a payment pad), to swipe sensing of information kiosks, objects, or even animals."  In addition, the author, Prince McLean  wrote that "Apple could leverage its micropayment system in iTunes, which already has a hundred million users' accounts with credit cards in 23 countries, to set up a payment system tied into the iPhone and iPod touch. " He closed the blog post by claiming that "adding support for an RFID reader is apparently easy and cost effective, and can be built right into the screen."

How? Apple applied for a patent, which stated exactly how the Cupertino engineers would integrate the reader into the touch screen.

Finally, on that first day, 9to5mac wrapped up the story with a little background on Apple's work with RFID that goes back a few years: "a 2006 Apple patent furnished a small glimpse of how devices might use RFID tags to connect with your wireless home network without configuration."

Bonus back story: Apple Insider reported on October 29 that Apple is upgrading the Apple store POS system from Windows-based EasyPay to iPod touch. Here's why: Apple began using Windows Mobile PDA's to speed up checkout lines in its retail stores beginning in 2005, and continued using them even after two generations of the iPhone left some observers wondering why the company wasn't using its own mobile platform. In the early nineties, Apple ran their business on IBM AS/400 servers (as did Microsoft, Gateway, Nintendo, Compaq, and other early tech leaders). The same way Apple and Microsoft had to keep their IT department relationship with IBM a secret, it was probably driving Apple crazy to rely on Windows Mobile PDA's -- to check out iPhone sales! A line busting iPhone is critical to Cupertino -- an NFC based RFID iPhone removes the need for a bar code reader!

November 6 -- The next day, Mobile Marketing Watch fleshed out the story from a mobile marketing standpoint.  "Apple’s impetus for seeking an RFID enabled iPhone is obvious. For Apple, turning the device into a handy payment tool makes the iPhone a far more convenient device than it already is. For mobile marketers, however, a group that has not yet had widespread opportunities to piggy-pack on such technology, the benefits could be equally bountiful."

Then the story points out that Dairy Queen began testing an RFID-based loyalty program in Indiana. As I wrote in June,  Would you like an RFID Tag with that DQ Blizz... customers who signed up for the program subsequently received coupons on their mobile phones via text message. The coupons were redeemable using RFID labels attached to the phones.

By day two the story is now exploding across the Apple/iPhone blogosphere. i4U picks up the story and ties it in with a sighting of parts for a new iPhone 4G seen in a wholesalers online shop. "Evidence is starting to stack up that a new iPhone is in the works now. If it's at the prototype stage already, we could be looking at a pattern-breaking release for Apple. Perhaps the recent launch of several high-end, critically lauded Android smartphones has necessitated an early release?"

Other blogs -- theiphoneblog, cultofmac, theappleblog, themacobserver,  refer to the AppleInsider report, and Wired Gadget Lab  sees that "an iPhone with an RFID scanner could have augmented-reality applications for general consumers as well."

November 10 -- The next week, the mainstream press gets a hold of the story. The Christian Science Monitor's Andrew Heining writes "An Apple adoption of the tech, with its army of App Store-loving users, could give NFC a real kickstart, bringing innovation to the field.What might that mean? How ’bout an app from Boston’s MBTA that not only displays location-aware maps, but lets riders do away with cards and payments?" He also connects the dots -- pointing out how this might work with the  innovative iPhone app for renting Zipcars.

The deeper meaning of the impact NFC RFID will have on the iPhone prompted the following blog posts:  RFID iPhone's iMoney plan sets stage for growth (9to5mac), Why Rumors of Apple Adding RFID to the Next iPhone Is a Big Deal (cultofmac), and other bloggers -- HTLoungenet, MocoNewsNet, and iPhonecodes continued to stoke the interest.

November 18 -- Today, the rumor became reality. Wireless Dynamics Inc., a provider of NFC and RFID SD products, announced the iCarte 110, the first NFC (Near Field Communications) and RFID (Radio Frequency Identification) Reader/Writer to provide NFC two way communications, RFID read/write and contactless payment capability for iPhones. As a MFi (Made for iPod/iPhone) accessory attaching to the bottom connector of the iPhone, the iCarte turns the iPhone into an NFC phone as well as an RFID Reader/Writer. The iCarte also contains an embedded smart-chip which can be configured as debit, credit, pre-paid and loyalty cards turning the iPhone into an electronic wallet.

According to the company, "The iCarte is ideal for iPhone users who want to use their iPhone for fast and secure contactless payments, transit payments, loyalty rewards, checking balances, top-up pre-paid credit, discovering new services from smart posters or kiosks and exchanging information with other NFC phones."

Here are the tech specs: The iCarte operates at 13.56MHz and supports a wide range of ISO14443A/B and ISO15693 tags including NXP MIFARE and I-CODESLI, Texas Instrument Tag-it HF-I, etc. The iCarte is capable of peer to peer communications utilizing NFCIP-1 and ISO 18092 standards and the embedded secure access module (SAM) is compliant with JCOP operating system. The iCarte works with iPhone 3G and 3GS with OS version 3.0 or higher and has a mini-USB connector that can be used to charge the iPhone and sync with iTunes.

If you've stayed with me this far, here's the payoff. What applications will this technology really be used for?

For starters, I see NFC on the iPhone offering consumers a great way to tour a museum. Tagged exhibits will signal the iPhone to request a relevant media file streamed from the museum's server. 

OK, let's get ambitious. Imagine you're a frequent flyer who stays at a particular chain of hotel. If you've got an NFC iPhone your reservation could be emailed to you and you don't need to check in at the front desk. Your iPhone will unlock your room key! Don't believe me?  The Fairmont Pittsburgh recently selected Signature RFID by VingCard contactless electronic door locks. The Radio Frequency Identification (RFID) locks allow for contactless guest room entry and are compatible with next-generation NFC cell phones.

What won't the NFC iPhones be used for? Warehousing and logistics.  NFC's read range is too short to offer any benefits where UHF RFID technology clearly is superior.

Oh, and one more thing. An RFID-enabled iPhone can't be used by big brother to "track" customers. The NFC chip and reader would only give a range of 4".

But, come to think of it, anyone worried about Big Brother shouldn't be using any iPhone (or any cell phone) or even an iTouch with its WiFi capability. These wireless technologies are "far field" and every time you make a phone call or log in to an access point you are being tracked.

How else is AT&T going to bill you for the call?