So the Mandalorian — and others in the bounty hunter guild — get work by agreeing to take on a bounty. And that seems to involve meeting with a middle man (such as Greef Carga as played by Carl Weathers) and getting some kind of tracking fob/beacon.
But how the heck does that even work? How can it even track a specific person? Is there some kind of genetic signature involved?
For example, in episode 3 of The Mandalorian when the Mandalorian rescues that Yoda baby, suddenly everyone’s beacon for that Yoda baby starts bleeping like crazy. How did that work? I mean how do those beacons know that the bounty target is no longer in custody? What changed between the baby Yoda’s captivity with Imperial agents to the Baby Yoda being carried away by the Mandalorian?
Looking for in-universe, canonical explanations; not armchair speculation and theories. If none (currently) exist, legends explanation would suffice. Regardless, please provide references and context.