Tamas Rudnai wrote:
> Oh, and I forgot to mention that several times crackers can eliminate
> dongles by writing a device driver that acts as the dongle, so the software
> things that the dongle is attached.

I might be naive, but I think it would be very easy to make a 100 % 
secure solution:

* Take a microcontroller that just doesn't have a facility for reading 
the code memory out of it. No facility. At all. Fullstop.
* Program this microcontroller with your algorithm
* Put the microcontroller into a small little product about the size of 
a thumb drive that hooks up via USB
* Make the computer give input to the microcontroller via USB
* Then the device gives output via USB

The PC never sees the algorithm. Also, since the microcontroller has no 
facility whatsoever for reading the program code, the only conceivable 
way of finding out what it's doing is to cut it open and somehow 
manually read from the memory... but I don't know how possible that is, 
or how many million Euro it would cost.

Add an exploding ink pack inside the chip aswell :-D

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