This is a solenoid electric lock, which is pinned with the door on the inside. You apply 12V on the two wires and the latch retracts to let the door open. Otherwise it's closed.
The two wires go inside a switch board, where a 12V DC power adapter is hidden and wires from the RFID door opener come in. The adapter powers both the outside number puncher and this lock. When you punch in the correct number, the controller powers up this lock and opens the door.
You can find circuit diagram in the RFID controller's manual book inside the box when you purchase it.
Now what happens when power is down?
Regardless of whether power is up or down you can always push the latch shown in this pic using your finger and open the door from inside whenever you want it. Like any other dead bolt.
Q. "The fading colors tell me that your home isn't very well maintained."
You need to look pass that to learn :-)
