How does this new holographic thingy in my ID work?

I got a new ID card from the NY DMV. It has embedded in it some kinda ultra-weird hologram type thing, which forms a pattern of wavy lines across the whole card. When held at a certain angle, the lines actually jump up at you, appearing as a 3D image, above the portrait and the rest of the info on the card.

Now, I know that to make a 3D illusion, you have to show a slightly different image to each eye. Usually this is done with some kind of glasses that filter the images, or another technique like those Magic Eye posters which never actually work for me anyway. So how in the hell does this thing work? It is truly baffling.

The way a hologram is made is to make any given point on the surface reflect a particular color depending upon what direction the viewer is from that point on the surface. If you set up the color and angles correctly, you can make a virtual object appear to be off of the surface.




surface
|
|------------ yellow
|
|------------ blue
|
|------------ yellow
|
|
|\
| \
|\ \
| \ \
|\ \ \
| \ \ \
   \ \ \
    \ \ \
     \ \ \
      \ \ \
       \ \ \
        \ \ \
         \ \ \
          \ \ \
           \ \  blue
            \ \
             \ yellow
              \
               yellow


Here, the blue “spot” appears to be in the center of the surface when viewed directly, but when viewed from an angle, the point of the surface that looked blue now looks yellow, and the point above that now appears blue. If you can make a smooth transition between those two points of view, you will give the impression that the blue spot is closer to the viewer than the yellow surface.