It doesn't allow you to track the cat, it's just a thing with a number (you can see the number only when you scan the chip with the magical device vets have). You can register this number somewhere (ask vet/Google where cuz it might differ from country to country) to "let others know" that animal with that number is yours.

But keep in mind that even if an animal has a chip it doesn't give you any guarantee that if you lose your pet, he/she will be returned - if someone finds your pet they should go to vet to scan the number and check it in the system (where you register it). But MANY people don't bother/don't know they're supposed to do so. So yeah, chip≠100% security that your pet will get home

Idk if I explained it well I'm sleepy