How tf do they work?
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Your SIM card is a smart card.
It is small computer with certain information (a private key) stored in a secure way (you can’t get it out) and this computer specializes in doing computations with that private key.
The result of those computations are used by your phone to proof your identity when you connect to the network. Your network operator is able to verify if that calculation was done by that specific SIM card and requires this so it knows who you are for billing/call routing etc…
Without (secure) SIM cards, you would be able to impersonate other people. (Receive their calls, have them billed for your calls, etc…)
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