The PACE iLok is a special USB device that holds your licenses for iLok-enabled software. Software publishers use the iLok to provide secure protection for their software. When you run their iLok-enabled software, it looks for the software license on your attached iLok.The new iLok is fully backward compatible with previous versions – so all software developed for use with a 2nd generation iLok will continue to work with a 3rd generation iLok.Since its release 16 years ago, the iLok hardware device has never been compromised.The design of the 3rd generation iLok is a huge step up from previous versions. The internal components are ingeniously small, packed into their metal case using methods that make duplication virtually impossible. And fewer components means fewer points of failure once the device is being used in the field.