so it seems like that processor is only handling the online aspects of the gamecarts. mmm still a bit confusing since you can update backups with sx-os.
The processor handles all cart communication, and its possible something in there is causing a fail on server-side authentication. I have no idea, I doubt any one does. And its not like SciresM or others in the scene give a shit about server-side failures that really only have a use in piracy.
Updates do not currently require the cart or any cert from it. Just your console ID. This could change and it could be a privilege completely revoked too if abused (which is likely what will happen in the very near future).
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From what I gather from
@TotalJustice's tests, the Switch when powered on/used and seeing a cart reads something from the cart/processor along with the header/cert (remember, there's a bunch of stuff in there we know zilch about) that is likely volatile and needs updating routinely, otherwise it fails to pass muster after a while which seems to be what has been happening as it went from "it worked!" to "it stopped working!" until the cart was re-introduced into the equation. So it has something on/in it that is being updated, something we know jackshit about behind securities we cannot currently defeat. It also means that a dump and a cart are unique from each other as the cart can continue talking to the Switch whenever queried, a dump cannot. This means, much as how digital titles are tightly guarded, so too (apparently) are carts!
If its signed and encrypted and somewhat routinely updated, then its a really good system to differentiate carts from dumps, and users with carts from users who dumped the carts and then tried to... dump the carts. And if it fails, you then ban the cert outright. But you also have someone routinely flagging their own console as a bad actor, so you ban that too.
All in all, I'm coming to understand that Nintendo has significantly upped their game on online detection. And as some of this is server side and uniquely identifiable, they have the final say even in some of the worst case scenarios. So to echo Scires, pirating on this system is dumb.