No. DVD's are unprotected, CD's are protected by PSX/Libcrypt. DVD's are backed up using Prassi / Record Now MAX and CD's with CloneCD. This ensures no problems here. The only reason why you need a chip is to bypass this protection which Sony build into the bios of the console - it hasn't got anything to do with the discs, so unless you have a chip, you will not be able to force the data through the Bios, which means no booting, which means no game.
P.S.: Your ignorance is forgiven, lol!
Hope this helps, LUFCfan...