According to one individual with a highly questionable reputation, this concept project could work because PS1/PS2 discs are authenticated only once on the VSH though liblv2 and the PIC chip would just automate it.
However, if Sony updates liblv2.sprx and more specifically ps1rom.bin so the emulated mechacon is updated it could be patchable.
Finally, to roughly translate from the video's caption:
"This video montage shows the operation of the chip that we are developing to load copies of PS1 and PS2 (if you're retro) in the PS3.
This video shows how to work, without leaving the console open and without switches etc out.
More information on the development of moddchip www.demonhades.org."
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What a great reason is this guy, we should not go to the most expensive (math and geo) to enjoy the quality (DHorg) jajajajaj
Well the fact is that for those interested in the chip to load copies of ps1 or ps2 I recommend not exceeding 3.40 update, just so we can see if they have any way to change the emulator patented and recognize the functions of the ps1 mediatype or ps2.
The retro holding may: Upload ps2 backups and Homebrew & Emulators **.
The retro may not: Upload and ps1 backups * & Homebrew Emulators
* A failure to investigate Nintendo NES, Sega MasterSistem, Game Boy, Spectrum and Yaroze games are 81.
** Super Nintendo, Mega Drive, etc etc.
Soon more information on DHorg, so that only those interested in the chip as Forewarned is forearmed