It's a multi-factor authentication platform. The item, application, or website would have to integrate LaunchKey first. The users would be able to login without using passwords with far greater security. The implementer gets the benefit of not having the liability of storing passwords and an enhanced user experience for their users.
It's relatively new. You can login to sites that support OpenID or directly support LaunchKey. You could also install a WordPress or Drupal plugin. Most businesses you wouldn't realize you're using LaunchKey though because it would be with their own branding. Also, it's much more enterprise focused for large companies to secure their employees' access while making it easier;safer;cheaper for everyone.
As far as I can tell, I carry my phone around and it magically does everything to let me into everyplace I'm supposed to be.