It is just a system that uses lines instead of human readable characters to represent data. The lines are easy to scan using a light pen or scanner, which is what people have used for decades and long before digital cameras existed.
There are multiple standards for it, product identification is only one application. You can easily create your own barcodes and use it for whatever purpose. Common purposes are: books, warehouses, membership cards, forms and so on.
A more efficient and modern approach is to use QR codes instead, which can store more data and have error correction. However they can only be scanned by 2D scanners and cameras, not the legacy barcode scanners.
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