We’ve seen a lot of impressive iPhone hacks since the device made its debut in June: an iPhone version of the terminal, a GUI app for ringtone uploads, even an NES emulator. But this one–quite literally–takes the prize for ingenuity: two hackers have allegedly created an iPhone hack that allows for real-time videoconferencing. The hack, which nabbed a first place prize at the C-4 Developer Conference’s Iron Coder contest for identical twins Ken and Greg Aspeslagh, enables iChat-like videoconferencing on the iPhone using the device’s built-in camera and a WiFi connection. But wait … isn’t the iPhone camera on the back of the phone? You better believe it. The Aspeslaghs, however, came up with a brilliantly simple hardware solution: a periscope built using mirrors, which reflects an image of the user into the camera lens on the back of the device.

For more on the hardware/software hack:
– check out the Aspeslagh’s blog post