I guess these chains are like motorcycle O-ring chains - which I actually know a bit about.
O-ring or X-ring chains (X-rings are the same, but the ring profile if cit through is shaped like an X for 2 contact points for better sealing)
are similar to regular chains, but are assembled in a bath of grease. The pins on the chain are sealed at either ends by these rubber- o-rings, and that is how they self lubricate. They still need to be oiled or greased because you will get wear on the sprockets, and also if tghe o-riungs are not kept oiled, what happens is that they dry out, and then do what rubber does - Grip any mating surface, which saps horsepower (yours in the case of a cycle)
So why bother - Valentino Rossi doesn't use O-ring chains as the O-rings sap the BHP. the reason is because His bike chains will probably be changed every other race so he doesn't care if they get a bit knackered inbetween.
The reason why they are good is because the grease sealed into the links between the O-rings protects the internal surfaces of the pins and sleeves, and if these surfaces are allowed to dry out instead of floating on a grease film, they will wear very very fast. this in turn makes the length between the links grow as the pin diameters wear smaller, and the bores in the rollers whick the pins sit in wear big and this will make the link length grow. When the link length grows, the teeth on the sprockets start to hook as they wear unevenly also, and then you end up throwing the whole lot away.
Always replace as a set if there is significant wear on one component or the other as different link lengths due to wear and tear will knacker brand new stuff very quickly.
There is a guy called Denis (loobman) who makes a cheap alternative to the scottoiler and his video says it all really. They are less than £20 a pop, and after having one of these on my old m/bike see no reason why they couldn't be used on a cycle if it is knocking up big mileage
http://www.chainoiler.co.uk/
