Remember the Pwned4Life exploit by Geohot? Yes its the same low-level bootrom exploit which was discovered by pod2g of Chronic Dev-Team couple of days ago. Lately, P0sixninja, the infamous iPhone hacker behind GreenPois0n tool revealed some useful information about this new bootrom exploit in a post (SHAtter) at iPhone Wiki which was later removed by him because the information was accidently misleading.
So what is Shatter exploit? SHAtter is the codename of the new low-level bootrom exploit found by pod2g and its probably the same exploit (Pwned4Life) found by Geohot before he quitted his jailbreak services in July, 2010. SHAtter is not the jailbreak but its a bootrom exploit like 24kpwn and the tool which will utilize this exploit to jailbreak iOS 4.1 on all current iOS devices will be called Greenpois0n (Unconfirmed). MuscleNerd, who happens to be a member of iPhone Dev-Team confirmed that this new bootrom exploit, codename SHAtter will jailbreak iOS 4.1 on all iOS devices including iPhone 4, iPod Touch 4G and even iPad.
Note that Apple cannot patch the SHAtter exploit through any software update as it is based on a low-level bootrom hole. To fix the SHAtter exploit Apple have to release the entirely revised hardware for all of the iOS devices. Apple fixed the 24kpwn exploit found in iPhone 3GS(Old bootrom) and iPod Touch 2G(non-MC) model by releasing iPhone 3GS(New bootrom) and iPod Touch(MC) models.
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The jailbreak based on SHAtter exploit will be different from JailbreakMe by Comex in way that you need to connect your device to your computer to jailbreak it instead of jailbreaking your device directly by visiting any website. This jailbreak tool will be developed by Chronic Dev-Team and it will be released before the arrival of iOS 4.2 final version which is due in November, 2010. It is not known whether it will be a tethered or an untethered jailbreak but as soon as we will hear any word from the Chronic Dev-Team, we will update you. So stay tuned!