Remember that scene from the matrix where the agents stuff a robotic worm into Neo's belly button, same thing but this is an early prototype. The difference is that this one needed to be inserted analy thus the rounded shape and colour. The upside was that during the development they also perfected their mouth sealing technique that prevented people screaming out.
This model has now been retired by the agents however it can still be found in China, Russia and various cruel bosses who wish to keep track of traveling employees and internet protesters.