Vitalik was right: It is possible to build Pure Mined PoW Crypto inside Ethereum infernal_toast Follow Aug 10, 2018 · 2 min read

Ethereum is so powerful, it is now possible to build pure mined Proof of Work currency inside of it. In fact, there are already thousands of miners who are minting new ERC20 tokens from smart contracts!

How is this possible? By implementing a SHA3 Proof of Work challenge on a ‘faucet’ method in Solidity, it is simple and it works exactly like Bitcoin Mining.

You see, Bitcoin mining works using the following algorithm:

SHA(nonce,blockData) < difficultyTarget

A miner keeps changing the ‘nonce’ until that equation is true (the SHA hash result is smaller than the adjustable difficulty target). When that is true, they have found a Golden Nonce and can submit it to the network for the reward!

On Ethereum, we can do the exact same thing in a Solidity Method.

As you can see, this method can only be executed if it is provided with a Golden Nonce so that the SHA3/Keccak256 (same thing) hash result is less than the miningTarget! Executing this method successfully will grant you 50 new ERC20 tokens. These tokens are now ‘proper cryptocurrency’ because every single one must have been mined using Proof of Work; not funny-money or ‘schrute bucks’ printed from thin air.

These are very exciting times to be a part of the Ethereum community! As pure mined currency becomes more of a dominant force and speculative ICOs fall off the radar, Ethereum will continue to stay relevant with these powerful technological advancements.

Now, we have multiple Token Mining Pools, ERC20 Token GPU miners, and these tokens are atomic-swappable on services like Forkdelta.

Read more at

http://reddit.com/r/tokenmining