Today, Geohot, posted everything you need, to sign and decrypt your own PS3 loaders. On his website, Geohot.com, he revealed the Metldr Key. This is a very important feat. The ability to decrypt the PS3's loaders, means the ability to get the keys for everything else on the PS3! Since MetLdr can't be updated with new keys, Sony's system is basically hacked for good!
[Edited by Rise_Against, 1/5/2011 11:42:04 AM]
It will be incredibly difficult to do so. It would require a hardware upgrade due to the way that system is built. No software update can patch it.
And no it doesn't mean that your system can be modded (it technically can be done at anytime). It means that homebrew applications and games as well as pirated backups can be played on the PS3 using the official firmware (essentinally accomplishing what modding is supposed to do without modding the system).
Let me put it this way: This was such a huge security breach that someone at Sony is getting fired for it.
[Edited by moderator Neo7, 1/5/2011 1:49:33 PM]
No. You have to physically replace the chip on the motherboard that contains that key. It's literally built into the PS3. No software update (which is firmware) will correct this problem.