Can someone explain incode/outcodes?

[mechmech]

I have been reading through some material and still don't understand the meaning of incodes and outcodes. I've seen a couple of places that offer the conversion service, but am still unsure of the use.

It this for the transponders? Say Ford for example? Am I understanding that if I can find the incode and convert it to an outcode I could program it to a 4D/TPX2 chip?

[2octops]

Yes it has to do with transponders.

Depending on the equipment being used to program, some will give you an incode that must be converted to an outcode that must be re-entered into the machine to continue communicating with the vehicle. This is a security feature built into the programmers software that makes it more difficult to copy the software to a pirated machine like the Chinese MVP/SDD copies.

Some manufacturers also use this sort of algorithm for programming keys to make it almost impossible for others to program without dealer based equipment or support,