The security chip makes it so your gadget's assets and code cannot be inspected or exported by other players when you publish your gadget on the Workshop. Once you include it in your gadget, each one of your assets will have an icon next to it to deny (red lock) or allow (green eye) access by people inspecting your gadget.

asset list with security options

Note: Since you can only have one SecurityChip per gadget, it will not have a number after its name in your gadget's list of modules:


However, there is currently no code that uses the SecurityChip.