The bracelet is equipped with a special mini camera, a microphone, and sensors for acceleration, light and direction.
The acceleration sensor measure how the user’s hands move, while the camera detects the color and other details of an object one’s hand. At the same time, the built-in microphone picks up nearby sound. Needless to say, all data can be sent to a computer and processed.
Link | Photo: CrunchGear
... ok not really :C