How Does an Xbox 360 Mod Chip Work?

Xbox 360 Cases
Xbox 360 mod chips are created for users who want to customize and tap into blocked features of the Xbox 360. Mod chips are purchased online from software creators who are constantly updating and hacking into the Xbox 360. In order to install a mod chip, you must open up the casing of your machine, which voids your warranty.
Soldering
Traditional mod chips are soldered onto specific points using a soldering gun. This is very detailed work, and one mistake can ruin your Xbox 360 machine and make it unplayable. The installation of the mod chips can also cause your system to "brick" and render itself useless.
Non-soldering
Newer mod chips can be installed without the soldering process. Instead, the mod chips are strategically placed, using pin markers in order for them to properly work. The chips come with directions and several wires that must be connected in order to run.
Rerouting
The mod chips installed on the system work by overriding settings built into the Xbox that detect copied games or game discs that were created from other countries. When the system tries to check for these things, the requests are routed or canceled by the mod chip, and the system is open to play and run any type of content.
Features
Once a mod chip is successfully installed, Xbox 360 can be customized and hacked into. Some of the most common features allow players to play burned games, view hard drive details and customize menu screens along with loading screens. A mod chip also adds more protection to an Xbox 360 by allowing users to set passwords for booting up the system.
Updates
Xbox 360 system updates can affect a mod chip's performance, so many mod chips come built with a USB adapter to enable updates. System files are installed to a USB flash drive, and that drive is plugged directly into the USB connection hub on the mod chip. Your mod chip automatically loads the data and updates the necessary changes.