The transponder was introduced in WWII by the British, to be able to identify friendly aircraft in the sky. The system was called a "parrot", which lead to terms like "squawk your parrot" and "strangle your parrot".
The system was later adopted by the US under the name "identification of friend or foe", which is still used in the US military today.
Definition: An electronic device that produces a response when it receives a radio-frequency interrogation. Aircraft have transponders to assist in identifying them on air traffic control radar.

A transponder is required in the following scenarios:
A transponder must be tested and inspected every 24 calendar months according to ?91.413.
Secondary surveillance radar is referred to as "secondary", to distinguish it from the "primary radar" that works by passively reflecting a radio signal off the skin of the aircraft.
Primary radar determines range and bearing to a target with reasonably, but it cannot determine target elevation reliably.
SSR uses an active transponder to transmit a response to an interrogation secondary radar. This response includes the aircraft's pressure altitude and a 4-digit octal identifier
How it works:
Mode A:
Only provides aircraft identification information by the use of squawking a 4-digit number.
Mode C:
Provides both aircraft identification (squawk) as well as pressure altitude information. If both aircraft are equipped with a TCAS, the transponder will provide the pilots with resolution advisories.
Mode S:
Aircraft can interrogate each other for information such as altitude, airspeed, and identification. If both aircraft are equipped with TCAS, the transponder will provide a resolution advisory that is smarter than on mode C.
Each mode S transponder comes with an unchangeable 24-bit address for identification.
| 1200 | VFR | |
| 7500 | Hijacking | "75" Man with a knife |
| 7600 | Lost communication | "76" Technical glitch |
| 7700 | Emergency | "77" We're going to heaven |