you have a custom firmware. Geohots firmware allows you to run homebrew applications such as file manager and ftp servers as well as emulators and (with an eboot.bin patch) back up games.
Currently there are multiple custom firmwares
ther is geohots: which at release, only allowed homebrew as geohot does not support piracy.
There is kakarotoks, which is an earlier custom
firmware that only allows for running unsigned code. It is a proof of concept only.
And then there is the new custom firmware by mininkoko (i forgot how to spell it) that so far can run back up games from a backup manager, but still has a few bugs such as it bricks all earlier pse phats.
All 3 of these are custom firmwares.
Hope this helps.