These news actually do mean that it's gone open source. The PS3Break is just an ATMEL (or PIC, depends which version you have) chip with a USB stick directly built onto it. There will probably be no encryption as (kinda ashamed to say this as PS3break is my way of jbing my ps3) the PS3Break team kind of does nothing except take other homebrewers' stuff, put it in their firmware and publish it on their site.
The PS3Break team doesn't code, but meh. Great news that this is coming. The best encryption they can do is put the truth inquiry code found on the box of the PS3Break and have it required for the downgrade, but that can be bypassed or a generator can be made for a key if someone finds out the algorithm of the truth inquiry code.
Expect every board to have the downgrader option VERY soon.