This is an interesting technique. Click see inside and drag those in different orders to see the scratch cat change what he says. I'm sure you guys can come up with interesting ways to use this such as for secure combo locks and such. The number chosen when you drag that block seems to change depending on the block you moved before it. Using 2 just makes a toggling system (drag one to select the other one). I wonder what would happen if I used more than 3. I'll have to do some experimentation.
Some testing: Entered: 1>2>3>1... Result: 2>3>1>2... Entered: 1>3>2>1... Result: 3>2>1>3... Entered: 1>2>1>3>1... Result: 2>3>3>2>2... Entered: 3>3>2>1>3... Result: 2>2>1>3>2...
