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That's a hardware dongle. Autocad and other professional products used to work with those. There were ways to hack those too and one could even find hacked versions of AutoCAD where the code to check for that was disabled.
Of course you couldn't run pirated software in the industry in case you were audited.
Yeah, I suppose one benefit of those dongles was that you didn't need to be always connected/online.
These days I use similar software and the licenses all require you to be online. Also most licenses are linked to a user login/email instead of a physical server/desktop which has it's pros and cons. Main con is we have to pay for more licenses in a big team instead of just having a few licenses linked to the 2-4 servers that the team is sharing. However with the user licenses we can use the software on any server/desktop of our choosing. No need to be locked to one device.