How does USB License Key work?

Here is how our USB License dongle works. ElecKey makes it by creating a hidden encrypted Key file on a USB flash drive. The Key saves the unique ID of the drive and the licensing properties. Since the drive manufacturer sets a unique ID on USB flash drives, that makes each USB drive unique by itself. The user may attempt to clone the USB drive to another drive. This will be failed because the copied Key file will have the unique ID of the old drive that doesn't match the actual ID on the new drive.
In addition, you can create the USB dongle in different types below for enhanced security.
Standard Dongle
The dongle is ready-to-use and no setup needed. The user can move the dongle between machines without restriction.
Node-Locked Dongle
The node-locked dongle provides extra security. It must be initialized and tied to a specific machine before use. The initialization saves the machine hardware signatures to the Key on the USB dongle, which will be verified when the protected application detects the Key. To move the dongle between machines, the user must uninitialize the dongle from the current machine first by using the provided utility.
Connect-Less Dongle
The connect-less dongle allows the user to install the Key on to a hard drive as Machine License for convenience as well as saving a USB slot. However, the user will be asked to connect the USB dongle regularly within a specified interval (e.g. 30 days) since the last time it was connected to the machine. The user can use the provided Install Key utility to install the Key from the USB dongle on to a hard drive, as well as remove the Key back to the USB dongle.