It uses a midi control system based on the Arduino Uno and MaxMSP. The Arduino has various inputs which are combined with the audio played from the guitar to create midi. These are processed through MaxMSP to produce the awesome effects you hear in the video.
Theres an interesting use of touch pads on the body and the neck. These are integrating support directly onto the guitar for things like filters and pitch shifters, whilst also being able to change there function on-the-fly.