Nitrokey 3 Secure Chip

Nitrokey Generic
1

The Nitrokey 3 does not yet use its secure chip. Instead the keys are stored encryped on flash memory.
Did I get that correctly?

In a Nitrokey blog post I’ve read something like “this doesn’t smaller the security”.

So now my question is:

  • Why doesn’t it smaller security?
  • Why even have a secure chip if it doesn’t improve security?

Could you clarify this for an absolute noob?
Thanks in advance!

2

Don’t know who to approach the noob, but this has been discussed here a bit:

but also there is some interesting news: