Dreambox is a satellite receiver which can be modified to decode encrypted satellite channels which most receivers are incapable of
Its firmware is officially user-upgradable, since it is a Linux-based computer, as opposed to third-party "patching" of alternate receivers. All units support Dream's own DreamCrypt conditional access (CA) system, with software-emulated CA Modules (CAMs) available for many alternate CA systems. The built-in Ethernet interface allows networked computers to access the recordings on the internal hard disks on some Dreambox models. It also enables the receiver to store digital copies of DVB transport streams on networked file systems or broadcast the streams as IPTV to VideoLAN and XBMC Media Center clients. Unlike many PC based PVR systems that use free-to-air type of DVB receiver cards, the built-in conditional access allows receiving and storing encrypted content.
The combination of third-party developers and network connectivity which facilitates card sharing, makes Dreambox use particularly common among enthusiasts and those who intend to obtain services without payment. Third-party software for this purpose is neither officially endorsed nor supported by Dream Multimedia and voids the official warranty; however, unofficial web sites support a very large community of enthusiasts.
It is open source Linux and more of its functionality is imbued in software, rather than hardware.
Yes, you can use "softcams" to decode some encrypted programming, but often doing so will be illegal, or against the TOS of the provider you subscribe to.