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https://en.wikipedia.org/wiki/Hashcash proof of work Works great for Teamspeak3. Required 'level' to join server is 22. New identity takes roughly two seconds of compute time to reach 22. Spammers never bother after first ban.

Wouldn't any kind of puzzle be too slow for embedded devices, yet trivial for a botnet?

It would be intresting if this could be used to do something useful, or even as a source of revenue for servers.

Bear in mind a smart TLS server could adjust the puzzle difficulty based on some kind of IP score.

It's no replacement for application level DoS filtering. But it wouldn't hurt to have such a feature either.

Yes. But given a botnet can overwhelm your server anyway, Puzzles let you stay up for others with first class computers. It's not the right tradeoff every time, but it's a good tool to have for many deployments.

Oh, and as to revenue: if this is useful, ads can get your browser to do profitable work. That's not a risk of want to take by designing, say, Bitcoin mining into this.

Are they putting bitcoin mining into the TLS protocol?

TLS Client Puzzles Extension