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I have played with NFC in the past, but those were full blown "NFC readers" based on NXP pn53x chips.

I want to know, how is a so called "Connected tag" different from NFC readers?

I found this chip from NXP on mouser, and while reading the specs it looks a lot like a reader. But the reader ICs like pn53x family are much more expensive, so what is the difference?

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No, it's a nfc tag that can be wrote/read By RF and by i2c. It is not a reader.

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  • \$\begingroup\$ This got flagged as a LQ answer, as in too short and lacking details. Just a heads up. \$\endgroup\$
    – user105652
    Jan 20, 2018 at 1:45
  • \$\begingroup\$ I wonder by who 🙄. Questions that can be answered by a simple "no", should be answered as such. \$\endgroup\$
    – Passerby
    Jan 20, 2018 at 1:48
  • \$\begingroup\$ Not by me. I see a lot like this so I suspect the servers flag it based on character count, number of sentences, etc. \$\endgroup\$
    – user105652
    Jan 20, 2018 at 1:52
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AIUI in NFC there is an "active" device that initiates the communication and a "passive" device that can only respond to communication. Tags are passive while readers are active.

Your device is passive. So your phone can talk to it but it can't initiate communication and it can't communicate with other passive devices.

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