As Radio Frequency Identification (RFID) technology achieves commercial success, its privacy and security issues are becoming a barrier to limit its potential for future start of the art applications. In this report, we present an investigation of the past and current research related to RFID security algorithms and protocols for product authentication. We also present a novel RFID security protocol based on eXtended Tiny Encryption Algorithm (XTEA). Analysis of the security and privacy level of our proposed protocol is performed using SystemC based modeling and different attack models are simulated to show that the protocol is robust and safe against application, protoypes of these attack models are implemented on FPGA platform. We also compare our proposed protocol technique with similar protocols presented in the near past that also use symmetric key algorithms to verify and demostrate main advantages of our protocol in terms of security and performance.