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OK, some guys who wanted Linux back on the PS3 have pretty much shown how sucky the PS3's security system is. These fail0verflow people basically found a massive hole in the security which on a conventional secure machine, needs a random number response. They found that the random number is the same every time.
Using this, they could grab the keys needed to sign software. This is a hardware feature so all PS3's can now have code signed on any firmware. It's basically now as secure as a Dreamcast. They even found the PSP keys in the PS3 system files.
Basically, no dongles will be needed and anyone is going to e able to install anything to their PS3. Custom firmware, Linux, ISOLoaders, you name it.
Only bad thing is that PSN is going to be loaded with cheaters...
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