There are now 3 variants for the project encryption: Controller, User and OEM. Controller Project Encryption is backwardly compatible with the previous version, so the current scheme will work correctly with Motion Perfect V2 and the Autoloader.

During encryption, files are encrypted against the hash value of a user supplied password. This password is kept secret. When an encrypted program is sent, an accompanying key is sent that will allow the program to be decrypted. The person receiving the key never sees the original password.