What is Denuvo ???
Denuvo is a piece of anti-tamper software that protects the .exe file. In many cases, modders will alter the .exe file of a game to allow for complex mods to function.
[Edit] Denuvo doesn't prevent all modding, just mods that need the .exe file altered. MGSV, Just Cause 3, and Dragon Age: Inquisition all have mod scenes to varying degrees.
As for your other question (Does Denuvo affect the performance of games?), it's hard to say if it affects any game significantly. Anything running on your PC in tandem with games can affect performance, but it's unknown if Denuvo has had any major impact (the early SSD rumors were virtually proven false as no one has been able to successfully recreate the problem after it was discovered and many people, myself included, looked for excessive writing to the storage device when playing Denuvo protected games). However, many games that run Denuvo have been very good, in terms of performance, such as MGSV and Mad Max. And so far, the newest Denuvo protected game, Doom, doesn't seem to suffer from being a badly optimized PC game. So my gut tells me that any performance impact Denuvo has is very, very minimal and that badly optimized games, like Arkham Knight, are at the fault of their developers and not Denuvo.
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