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With the USB port now blocked the dongle wouldnt work on newer firmware.   The upside was that every game released to then could be playable from USB.   It meant the end of playing them on PSN though.   With christmas on the way the new rush of game releases would need updated firmware to play,   Gran Turismo 5 was the first big release not to work.   It required firmware 3.50 to run and this means no dongles could work.  

It wasn’t until nearly Christmas that a way was found to play it on CFW.   Of course it turned out just after that very same Xmas that failoverflow cracked the keys   New years eve and the next day saw the scene light up with the first news of the public keys.   Geohot released his hello world on new years day   Not long after that he released his jailbreak pup.   Whilst the jailbreak didnt immediately allow backups a way was found to use them.   Backups were difficult but possible with this jailbreak.   One infamous CFW from Wanikoto caused many bricks but most went for the Keamw release.  

For eight weeks people enjoyed backups and playing them online.   Suddenly cheating was a real problem with online games for the PS3   More server monitoring was added to the games to catch the cheaters.   During this time a hacker quietly gained access to the PSN account server.   Credit card details were stolen from a possible 50 million users.   Once the hack is discovered Sony closed down PSN.   Sony took nearly two months to get PSN back online   When it returned the added security meant forget about PSN for CFW users.   For the average user accessing the network was too difficult.   As new games come out they are uplayable due to firmware restrictions.  

A split occurs in the scene between the homebrew and 'backups' crew which divides the scene   For some time but the release of the true blue dongle reunites it.   Special DRM in the dongle meant you had to run specific versions of the game.   Eboots that were being released by paradox.   A little later duplex started releasing PSN games having somehow cracked the newer keys.   Many people began to suspect TrueBLue had access to higher keys than the 3.55 ones everyone else had,   something sort of confirmed a bit later as the 3.60 keys themselves were leaked.   This definitely marked another rise in activity on the ps3 scene.   Obviously Duplex didnt like the built in DRM of the TB dongle and commenced to try to crack it.   Remarkably, they succeeded and then started releasing tb free eboots.   TB claimed to be about to release an update for their dongle with new games   so far no updates from them have been made   so it would seem at this point that trueblue are dead.   A way has also been found to turn normal ps3 consoles into debug units.   Debug consoles or Dev Units will run code without having to be signed by Sony's keys.   Or course the drawback of the ps3 dex unit is it will never be able to access psn.   From that point of view then its obvious that if you are to keep PSN and backups   Firmware 4.21 needs to be jailbroken.