Mining on the proof-of-stake TON blockchain was a unique phenomenon to behold. Blockchains of older generations, such as Bitcoin, use a proof-of-work consensus algorithm. For these kinds of networks, mining is an integral and vital component. Thanks to miners, the network stays online, new blocks are created, and new coins are released, which are collected by the miners themselves as a reward for their services.
Fresh new coins can only be obtained via mining. When considering anyone can become a miner, this creates a more honest and even distribution of tokens among the network’s participants.
Next-generation blockchains operate by using a proof-of-stake consensus algorithm. For these networks, mining is unneeded, effectively making blockchains substantially quicker and more affordable to transact. On PoS blockchains, however, their teams of developers issue the tokens initially. Usually, they oversee the distribution and sale of their tokens to investors, funds, and users. This is a centralized distribution strategy that contradicts the spirit and tenets of decentralized technologies.
The TON blockchain was the first-ever to combine the two consensus algorithms. The blockchain runs on proof-of-stake technology, making it fast and cheap, but the initial token distribution was enabled by mining, which was decentralized and had the same conditions for all who participated.
This approach, which we’ve dubbed initial proof-of-work (IPoW), provides immediate advantages — it will undoubtedly be used for future crypto projects. On TON, many solutions and functionalities have been created, and one of them is IPoW.