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This transponder coil is a device used by the engine control unit or the security or immobiliser computer to determine weather you have the original key in the ignition to start the engine. This is an anti theft device that makes it imposable for a common criminal to steal the vehicle by hot wiring your ignition to start the car.
Its function it to read a transponder chip installed in the key. This code in compared to a stored code in the engine control unit and on some models it is checked by both the engine computer and immobiliser computer. It is possible to reprogram the codes but not known how to do so by most people including the dealerships.
The use of a transponder coil and chip for security makes your vehicle pretty much impossible to get stolen, making it secure and is accepted by all insurance company’s.