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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My english is bad,for it i use me subforum at spanish lang,but the video show at me comunity DHorg is for explanation how run the moddchip at development,when i finish and solder moddchip i make a complet video show the modchip,and material needed for build all ppl,all share info and free.
when i finish the development upload video and open a new thread whith all details.The video dont is called fake,is called videoproyect or videoexplanation,fake is when the supposed method dont have info and no posible,that moddchip is posible and comming soon release
Ok, no offense to you if english isn't your first language, but I didn't understand what was posted initially until I saw these further posts. I completely understand how things can be misconstrued with a language barrier.
However, when I read the initial post here about this (and the english in it is grammatical nightmare), it seemed like the video was trying to demonstrate a working hack with a "proof" video. If this wasn't the case, then I apologize if you took offense to my comment.
Generally posts in this particular forum are about working hacks. If this video is just to demonstrate how it's "supposed" to work, then it should have been stated a little more clearly to the english speaking members so misunderstandings do not happen.
I think I understand what you're posting now though.