The beta 2.0 firmware that comes with the iPhone SDK has been modified to not only jailbreak but unlock the iPhone, even before the firmware’s public release. Part of the Pwned Project, the hacked firmware will allow you to do anything you want, including the installation of both official and unofficial apps, and even patches. We got the exclusive details directly from the DevTeam, including the fact that it is going to be extremely hard for Cupertino to close this new hole:
pwned firmware means it’s custom [firmware], you can have it install anything you would ever want 🙂 Pwned works with some magic, it will be hard to close but nothing is impossible (from Apple) with a mindtwist. But first, we will enjoy 🙂
They told us that this is all part of their previous Pwned project, which instead of trying to hack into the iPhone, directly patches the firmware itself to both unlock it, so you can use the iPhone with any carrier you want, and allow you to install any applications you want.
According to the Dev Team, the custom 2.0 firmware (technically, 1.2.0,) is now up and running without problems in many of their iPhones, running unsigned applications without a single problem. However, current Installer.app applications need to be changed: “they changed lots of the API, a lot. We will see how much has to be changed to the Toolchain [the previous development tool for iPhone independent developers] to still work after 2.0.”
The best news, however, is this: “the hacked 1.2 firmware works with anything. AT&T and others, it’s pwned. And Apple will not really be able to patch it this time… somehow :-)”
source: gizmodo.com