The term geofencing refers to technology that uses GPS coordinates or RFID signals to draw virtual boundaries in space and to trigger certain actions based on boundaries. This virtual border is called a geofence, which is a portmanteau word consisting of a geographic and a fence. Actions triggered by the user when a geofence is crossed can result in sending push messages, emails, texts, or in more complex applications, which sometimes include programming instructions. You could get more information about geofencing at www.propellant.media/what-is-geofencing.
Both objects and people can be found in geofences. If a receiving device such as a smartphone or microchip in a car is within the predetermined geofence range, the next action is triggered by an exchange of signals between the receiver and transmitter. The recipient receives a message, for example, that a special offer was made to him or that cars with microchips are not allowed to cross national borders. Geofencing is technically based on a GPS, but can also be implemented using the RFID chip and M2M communications. It is generally assumed that geofencing will become an important technology for daily use. This technology is already being used in mobile marketing. Geofencing is used in a variety of fields to manage administrative tasks, supplement marketing, or to check security-related aspects. In principle, such a system works like a positioning and navigation system. The difference lies in the boundary coordinates, which cover a certain area in the form of a rectangle or circle and function as a filter. This virtual positioning is known from the location of the vehicle by GPS.
By distinguishing between the inside and the outside of a precisely defined area, it is possible to trigger the action of entering or exiting this defined area. For example, location-based users could be encouraged to buy at a specific store location as soon as they approached. Instead, measures against theft or protection of movable objects are implemented using designated outdoor areas. If an object moves outside the marked area, the system administrator receives a message or is warned. These functions are known from location-based services (LBS). Entries to geofences are automatically detected by the device or system and actions are automatically initiated.