there is a modchip, technically speaking. it allowed you to infinitely share games. it's not needed anymore, because there's a software flaw that allows that. it's a major screw up by sony as usual.
Exploiting a system just isn't simple sometimes. Mod chips are basically a last resort in the current era as software exploits are usually enough. And even though they are a last resort, that doesn't mean the system can be exploited through a mod chip.
Once again I fell down the martial arts rabbit hole and am plumbing the murky depths of the internet's various martial arts and fighting crafts echo chambers.
If you're not actively involved and only get up to speed every few years or so, you can see the tide of public opinion flapping worse than my dong while I'm skipping naked down a hallway.