Hitachi has created a really small RFID tag.

(Read the whole story on Engadget
Now… I can think of some creative ways to use these things. You can sprinkle some on something, or someone. And so you can track someone, and see where they have been when some of the powder falls off during, shaking hand, walking down the street. Probrably also has some potential for warfare.
A friend at worked mention Motes today, an active and wireless version of an RFID tag. It communicates with other motes. Now if these things can get as small as Hitachi’s RFID, well then we can REALLY has some fun.

Sensor Nets/RFID – Intel Mote