The hacking business is on progress these days. The users recently encountered a fresh piece of discovery made by hackers just a few days after a week of the release of Apple’s iPhone 3G. An unofficial development team has invented software by which the users can install third-party programs which are not sanctioned by Apple.

The announcement was made by iPhone Dev Team, which has released ‘Pwnage 2.0.’ The software will allow unauthorized third-party applications to be loaded on older iPhones and iPod Touchs running the iPhone 2.0 operating systems.

Though the tool currently does not work with the new phone to unlock and allow it to be used on unauthorized cell networks, however a smooth process of installation on both the new and older models is being done by the users.

One of the users expressed his views for the unauthorized software as, “it works like a charm. Best thing is you can share your custom firmware with others.”

The iPhone 3G might not have been unlocked by the Dev team, but a Brazilian blog had reported this week that the iPhone 3G had been unlocked by the users with the help of a special SIM card adapter which makes the phone think that it’s on an approved network.