A dongle object represents the security device which ties ENCX to a particular computer. This could be a hardware device but normally it will just be a special encrypted file. See Dongle Free Security for more information about this.
A dongle, be it hardware or software has three states:
Many operations (e.g. opening a chart) need an Active dongle. The State property of the Dongle object exposes these states as an enumeration.
Most applications should monitor the state of the dongle - Monitoring the Dongle.
If you are writing a command line application then you should read Dongling for Command Line Applications.