Well, if the physical object doesn't change, the encryptor won't matter. You can build another one that reads the key and stores it, and voila, a digital duplic

Well, if the physical object doesn't change, the encryptor won't matter. You can build another one that reads the key and stores it, and voila, a digital duplicate. I don't understand how this will protect stuff beyond your neighboor level attack. Given that your neighboor can steal you both the key and the reader.