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The tool works by modifying the system update process. After installing the patch and rebooting the system, the user can install custom firmware as a system update the same way that was used on firmware 3.55 and below.
While this is not the first time the PlayStation 3 has been hacked, according to Eurogamer, "The release of the new custom firmware—and the LV0 decryption keys in particular—poses serious issues." It also says that "options Sony has in battling this leak are limited" since "the reveal of the LV0 key basically means that any system update ...
George Hotz claimed to have created custom firmware for the PS3 called 3.21OO that re-enables OtherOS and published a video as proof. [15] Some in the online community claim that this custom firmware was a hoax. [16] On July 14, 2010, Hotz announced that he would not bring out his custom firmware to the PlayStation 3. [17]