How mining works in TON
So how come there is
Proof-of-Work in TON?
Well, the reason is that the initial issue of 5bn Toncoins was transferred to ad hoc Proof-of-Work Giver smart contracts.
Mining is used to obtain Toncoins from this smart contract.
PoW Giver contracts have their limits and will dry out once users mine all available Toncoins.
Putting it in layman’s terms, in any moment of time the PoW Giver contract has a computational puzzle, a challenge. Resolving it is rewarded by a fixed number of coins. Then a new challenge is generated. The only way to resolve the challenge is to brute-force numbers which takes serious computational resources.
If a puzzle is resolved too soon, the PoW Giver contract increases the complexity level which means more power needed to resolve it. Yet, if resolving took too much time, the complexity level is reduced. Thus, the PoW Giver contract maintains stable the number of coins given per day.
The more users participate in the process, the harder the task it. You have to both find a solution and do it faster than other participants.
How is it implemented?
In practice users launch ad hoc software that brute-forces numbers and sends suggested solutions to PoW Giver contracts. The higher is a performance of a miner’s computer that operates this software, the higher probability of getting coins is.
The more miners there are in the network, the higher mining computational complexity is and the more computational power is required to mine coins.