diff --git a/README.md b/README.md
index c5bd138..2711af6 100644
--- a/README.md
+++ b/README.md
@@ -107,11 +107,11 @@ Each JSON configuration file for the gateways can specify detailed settings for
 ```
 
 ## Authentication
-Basic authentication can be enabled using the `--auth` flag. The username and password should be set through environment variables `GATEWAY_USERNAME` and `GATEWAY_PASSWORD`, respectively.
+Authentication can be enabled using the `--auth` flag. The auth token should be set through environment variables `GATEWAY_PASSWORD`.
 
 ### Running the Application
 To run the application with authentication:
 
 ```
-DEBUG=true GATEWAY_USERNAME=myuser GATEWAY_PASSWORD=mypass go run . --config config.json --auth
+DEBUG=true GATEWAY_PASSWORD=my_auth_token go run . --config config.json --auth
 ```
diff --git a/internal/auth/auth.go b/internal/auth/auth.go
new file mode 100644
index 0000000..ff13218
--- /dev/null
+++ b/internal/auth/auth.go
@@ -0,0 +1,19 @@
+package auth
+
+import (
+	"net/http"
+)
+
+func URLTokenAuth(token string) func(next http.Handler) http.Handler {
+	return func(next http.Handler) http.Handler {
+		return http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+			authToken := r.URL.Query().Get("auth_token")
+			if authToken == "" || authToken != token {
+				w.WriteHeader(http.StatusUnauthorized)
+
+				return
+			}
+			next.ServeHTTP(w, r)
+		})
+	}
+}
diff --git a/internal/auth/auth_test.go b/internal/auth/auth_test.go
new file mode 100644
index 0000000..1952e0c
--- /dev/null
+++ b/internal/auth/auth_test.go
@@ -0,0 +1,54 @@
+package auth
+
+import (
+	"net/http"
+	"net/http/httptest"
+	"testing"
+)
+
+func TestUrlTokenAuth(t *testing.T) {
+	validToken := "valid_token"
+	middleware := URLTokenAuth(validToken)
+
+	tests := []struct {
+		name           string
+		url            string
+		expectedStatus int
+	}{
+		{
+			name:           "Valid token",
+			url:            "/?auth_token=valid_token",
+			expectedStatus: http.StatusOK,
+		},
+		{
+			name:           "Invalid token",
+			url:            "/?auth_token=invalid_token",
+			expectedStatus: http.StatusUnauthorized,
+		},
+		{
+			name:           "Missing token",
+			url:            "/",
+			expectedStatus: http.StatusUnauthorized,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			req, err := http.NewRequest("GET", tt.url, nil)
+			if err != nil {
+				t.Fatalf("could not create request: %v", err)
+			}
+
+			rr := httptest.NewRecorder()
+			handler := middleware(http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
+				w.WriteHeader(http.StatusOK)
+			}))
+
+			handler.ServeHTTP(rr, req)
+
+			if rr.Code != tt.expectedStatus {
+				t.Errorf("expected status %v; got %v", tt.expectedStatus, rr.Code)
+			}
+		})
+	}
+}
diff --git a/main.go b/main.go
index ae3541f..725c6b2 100644
--- a/main.go
+++ b/main.go
@@ -15,6 +15,7 @@ import (
 	"github.com/go-chi/chi/v5/middleware"
 	"github.com/go-chi/httplog/v2"
 
+	"github.com/sygmaprotocol/rpc-gateway/internal/auth"
 	"github.com/sygmaprotocol/rpc-gateway/internal/metrics"
 	"github.com/sygmaprotocol/rpc-gateway/internal/util"
 
@@ -80,14 +81,12 @@ func main() {
 			r.Use(middleware.Heartbeat("/health"))
 			// Add basic auth middleware
 			if cc.Bool("auth") {
-				username := os.Getenv("GATEWAY_USERNAME")
-				password := os.Getenv("GATEWAY_PASSWORD")
-				if username == "" || password == "" {
-					return errors.New("both GATEWAY_USERNAME and GATEWAY_PASSWORD environment variables must be set for basic authentication")
+				authToken := os.Getenv("GATEWAY_PASSWORD")
+				if authToken == "" {
+					return errors.New("GATEWAY_PASSWORD environment variables must be set for basic authentication")
 				}
-				r.Use(middleware.BasicAuth("API Realm", map[string]string{
-					username: password,
-				}))
+				r.Use(auth.URLTokenAuth(authToken))
+				fmt.Println("Authentication configured on gateway")
 			}
 
 			server := &http.Server{