How do you trust that it isn't sending identifiable info to them too? Is the software open source and auditable? Is it legally enforced that every hardware uses the open source software?

I assume that it would need some kind of asymmetric encryption signature on the boolean too, and make it change all the time like OTP? Otherwise I'd think it could be intercepted and forged, right?

And how would the reader work? Everyone needs to buy a reader to beep their ID to when they want to watch porn?