Originally Posted by TKoProductions

The microchip doesn't track the animals whereabouts like a GPS.

It's more of a barcode, so that if the animal is brought to the pound, they can identify the owner.

Each animal is assigned a unique serial number. If animal control, or some neighbor were to bring your cat to the pound, they would scan it, and come up with a serial number: 1N8879P3.

Then, they'd look through through their database, and find out that 1N8879P3 belongs to RRRED whos street address is...