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I didn't see any real explanation of the tech, but it seems like a (slow) synchronized clipboard that has nothing to do with your body at all. At best, confusing, at worst... an anecdote:

I remember when I had to convince my grandma that closing the browser wouldn't make her email disappear.

Now I'll have to convince people that washing their hands won't wipe away the bits.

I took a minute to title this one because as far as I can see you're right, it's not storing anything in or on your body but I didn't want to say anything in the title that wasn't on the page. So I added the "conceptually" bit from the page in an effort to accurately but succinctly label what this actually is.

Here's the page I found it from originally where it says that it uses Dropbox or FTP for the transfer:

http://www.newscientist.com/article/dn20325-store-data-in-yo...

I found it interesting because it ostensibly can be used with Dropbox which is an app that I like. Though I disagree with New Scientist that Dropbox is "still irritatingly complicated" but maybe that's just because I'm a geek.