When you install Windows 10 or Windows 11 on a new PC and enter a valid product key, the operating system creates a "digital license" (also called a digital entitlement). This license is tied to the HWID—a hash of your motherboard, CPU, hard drive, and other core components.
stands for Hardware Identification. It is a unique fingerprint derived from the physical components of a computer. Microsoft utilizes HWID to tie a software license to a specific machine, ensuring that the license cannot be transferred to a different computer (unlike a retail key). hwid kms
To recap: