Multifunctional magnetic nanowires (MNWs) have been studied intensively over the last decades, in diverse applications. Numerous MNW-based systems have been introduced, initially for fundamental studies and later for sensing applications such as biolabeling and nanobarcoding. Remote sensing of MNWs for authentication and/or anti-counterfeiting is not only limited to engineering their properties, but also requires reliable sensing and decoding platforms. We review the latest progress in designing MNWs that have been, and are being, introduced as nanobarcodes, along with the pros and cons of the proposed sensing and decoding methods. Based on our review, we determine fundamental challenges and suggest future directions for research that will unleash the full potential of MNWs for nanobarcoding applications.