The plugin filters what is in WP’s $content variable during The Loop based on whether or not the user is logged in. In its most basic form, if the user is logged in, it allows the content to be displayed. If the user is not logged in, it empties this value and replaces it with the login and registration form.
Back in 2005-2006 when the plugin originated, this was a very simple process. Today, not so much. Today we have custom post types, visual page builders, plugins that are really a full blown application such as WooCommerce or BuddyPress, and countless other possibilities.
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