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The image is being painted onto the camera sensor instead of the retina.

Regarding "shooting lasers at your eyeball, which sounds unhealthy", this technology has existed since at least the early '00s. Microvision was showing off their Nomad laser HMD (https://www.google.com/search?q=microvision+nomad) around 2002 IIRC. It's reasonably well established as safe.




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