A transponder key is a type of car key that uses a microchip to transmit a low-level signal from the key to the receiver located in the car. The microchip in the key is programmed with a unique digital serial number that matches the digital serial number in the car. The receiver detects the serial number using radio frequency identification (RFID) and will only unlock or start the car if the correct serial number is identified. Transponder keys were introduced in the 1980s by General Motors to combat car theft using hot-wiring techniques. The core purpose of transponder keys is to eliminate auto theft, and they have become a central part of many modern cars’ anti-theft systems. The advantages of transponder keys over regular remote keys include security features such as triggering an alarm if a thief attempts to enter the vehicle without the correct key.