Dogecoin mining is the process of rewarding new coins for checking transactions on the Dogecoin blockchain. That sounds easy, right? It's not that simple, really!
Dogecoin mining is like a lottery. To play the lottery, you must do some work. In fact, your computer (or host) should do the job! This work includes confirming and verifying the transactions that I spoke about in the previous section.
Many computers work with the same transaction block at the same time, but only one can receive a reward for new coins. The one that receives the new coins is called the node, which adds a new transaction block to the old transaction block. This is completed using complex mathematical equations.
The node that solves the mathematical problem is the first to win! He then adds the newly confirmed transaction block to the rest of the block chain.
Most cryptocurrency mining happens this way. However, mining Dogecoin has its own characteristics. Among them: Algorithm: each cryptocurrency has a set of rules for mining a new currency. These rules are called mining or hashing. Block mining time: This is the average duration of checking a new transaction block and adding it to the block chain. Difficulty: This is a number showing how hard it is to get each new block. You can use this number to determine the probability of winning the “lottery”. The complexity of mining can increase or decrease depending on the number of miners. Difficulty is also adjusted by the coin protocol to keep the block time constant. Block reward: this is the amount of new currency that is awarded to the miner of each new block.