Based on my reading, here is how I believe the system works:

A Nunchi encoded device with a MicroSignet enabled chip receives and interprets sensor information and responds by reconstructing that information independently via Synaps on either a backend device (e.g. a server) or another edge device (e.g. a mobile phone), which uses MicroSignet to ensure that the information is legitimate. If so, the device responds appropriately according to its own Nunchi encoded instructions.