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Click here for Wookieepedia's article on the Canon version of this subject.  This article covers the Legends version of this subject. 

"You're sure the homing beacon is secure aboard their ship? I'm taking an awful risk, Vader. This had better work."
Grand Moff Wilhuff Tarkin to Darth Vader[5]

The XX-23 homing beacon was an s-thread tracking device produced by Neuro-Saav Technologies and used during the Galactic Civil War.

The XX-23 was a small cylinder that broadcast a continuous signal that could be received by HoloNet s-threads. A dedicated computer would then be able to determine when the ship crossed an s-thread and plot its course with this information.

It could be attached to the hull of a ship via a molecular bonding agent. It would use a ship's heat and radiation emissions to power itself, making it more difficult to detect than other trackers.[4]

The homing device planted onboard Millennium Falcon by a HMOR homing droid was a variant of the XX-23 design.

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